<<<I will be 53 next month. I can retire from government in 2 years with a pension that equals about 60% of my salary.After vascillating, I have decided to keep 50% of my investments in stock (some mutuals, some in a managed account), 30% in a Vanguard index bond fund, and 20% in a guaranteed income fund.>>>Much of the anwer or comments surround the phrase "it depends".Will 60% of your salary cover your basic expenses? Will your other investments be used to cover your "wish list"?The main thing you need to be concerned about is inflation. At 55 you could easily live another 30 years. Cost of living could easily double or triple. Therefore, you need something to outpace inflation, that means stocks.Here's my $0.02. I'd keep five years worth of spending in cash/cash equivalents. The rest in stocks, the easiest form being an S&P 500 Index fund. It'll give market returns, low expense, no "extra" management fees. I'd avoid a bond fund. Essentially the same risk as stocks, can loose principle if interest rates go up, and historically have a lower return. If you don't won't too much in stocks, I'd put more in a guaranteed income fund or buy individual bonds. All that said, a 50/50 split between stocks and CDs/"guranteed income" would seem resonable. But it all depends.JLC
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