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<<I am a 56-1/2, married with a house that will be paid for in 4 years. My company will be offering an early retirement plan effective 6-30-98.

In preparation, I have contacted several financial planners. I have been disappointed, to say the least, with the suggestions I have received.

All of them recommend that I keep 40-50% in fixed income securities yeilding 6-7%. I don't think I am greedy, but that seems to be a little too conservative.
I don't need the money for 7-8 years, as the company has offered me a guaranteed 7 year contract making more than I currently make, although I would be an independent consultant (I like that idea). Health ins would be covered under the retirement plan, so no expenses there.

I feel like putting the money into funds that pretty much cover the major markets would be much more agressive, yet not too risky (I am not scared of the risk since I will not need the money for a while). I think that Vanguard has some pretty good index funds that would give me the allocations that I need for diversity.

In addition, the financial planners want about $7,000 a year for all this good help they are giving me.

What do you think? Am I going off the deep end, or should I deep six these guys?>>

You have a goodly length of time before you need to start using those funds, so I tend to agree you could be a mite more aggressive here. However, it's an individual decision based on your tolerance for the ups and downs of the marketplace. Your advisors are (I'm fairly certain) giving you the traditional conservative advise based on your age. But never forget that it's YOUR money, and if you want and can tolerate more risk and if you're confident in your own investment knowledge, go for it. IMHO you will make the best manager of your own money anyway.

And BTW, at $7K per year for their services, you better have a stash upwards of $900K or they are on the high side for money managers. I'll let you determine that.


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