David stated on Friday in his commentary in the RB Port"To restate the Foolish investment approach succinctly,once again: ----Now, as you get older, you need to begin to move retirement money(whatever money you will need) into bonds and T-bills."I have great difficulty in understanding that suggestion for a number of foolish reasons. Most retirees should keep their investments in good blue chip stocks with decent dividends; for example.in Canada, in any or several of the 5 big banks, plus a number of other solid companies. Dividends offer a favourable tax treatment to the recipient, and in addition, the dividends increase over time and in most cases, exceed the cost of living. In addition, payments are made far more frequently during the year, enabling better money management and $ flow. To place most $ in fixed securities as suggested, guarantees a constant erosion of purchasing power from the income derived as well as an erosion in real $ terms in the value of one's investments. One may wish to place a percentage of available funds in fixed securities, but the advice reiterated by David is not very foolish. RA Street
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