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I am well into retirement. I have to admit that I had a bit of a panic. My IRA (converted years ago from 401K) had a mix of dividend stocks, no load mutuals, some iShare funds (which have tanked considerably), two bonds - Ford and GMAC which is scary, cash.

Somehow my investment manager allowed my fixed income allocation fall to 28%. This brought me into a panic because that is way too small an allocation for someone my age. So I sold off all the mutual funds because I had quite a list of dividend stocks. We bought some very short term CD's - 3 mos, 6 mos, 9 mos. We are buying more dividend stocks or adding to those in the portfolio. It is hard to purchase anything fixed income with rates so low.

I have a large cash/fixed income position to cover RMD's and let me sleep at night. Yes, I lost $$ selling off the mutual funds, but most were sold above their purchase price except for S&P500 index fund.

I have scaled down buying unnecessary purchases.

I cannot give advice on what anyone should do. But I would be cautious at this time. Here is an article on allocation that might be helpful:

http://www.bargaineering.com/articles/stock-allocation-rule-...

Good luck to all

Birgit
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