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Subject:  Re: Asset Allocation for Retirement Date:  1/23/2003  10:45 AM
Author:  JLC Number:  35608 of 88425

<<<You can loose your principle just like in stocks or equity funds. To get a fixed rate of return I simply buy CDs. Rates might currently be low but I know what I'll have when I'll get it.

Of course, you could always get a fixed rate of return on a bond by holding to maturity (assuming that the issuer doesn't default>>>

Yes, if you hold individual bonds. Bond funds you can easily lose capital. At one point I was considering buying individual bonds for that little higher interest. Then Enron, Quest, and WorldCom hit the fan. I imagine their bonds went from AAA to junk overnight. Thus, I'm sticking with CDs for that fixed rate of return.

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