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Subject:  Re: Wellesley Income Fund Date:  3/10/2003  12:42 PM
Author:  yobria Number:  35867 of 78166

A lot of good questions, and as mentioned you're on the right track to successful retirement investing.

The Wellesley fund is a great choice for someone of retirement age. If you're going to be drawing down the principal from this investment to live on, however, you may want to ladder (as mentioned) part of the fixed income in bonds or CDs. Then you know exactly how much you'll have to cover next year's living expenses, and when you're going to get it. Also, the Wellesley doesn't provide international diversification, which you must have. I'd put 25% of your stock investment in international equities.

>>if the market comes back I can roll it into the Wellington 60/40
What your saying is, "Stocks are cheap now, but when they become expensive again I'll overweight them in my portfolio". I wouldn't do this- you won't have much luck trying to time the market.