<<<<<We will retire in 4 months...85% of retirement funds are in a Growth Dividend fund, 15% in tech stocks. Over the past 5 years we have done EXTREMELY well, and are very happy with the results...but now on to the future of a fixed income, ..ah...What to do, what to do....Do we leave it all there, expecting the normal ups and downs, (the downs affecting our confidence considerably) or do we place 85% of it in tax free triple A insured Bonds??? Any advice?? >>>>>I'd think that 85% in AAA bonds would be a little drastic. Of course, if you have enough retirement assets to generate sufficient income and growth above inflation with 85% bonds...I'm assuming that you plan on living in retirement for 20-30 years or more. If that's the case, it's quite reasonable to be invested mostly (or even fully) in stocks. Many people suggest cushioning the volitility of this sort of portfolio by holding 3-5 years worth of money in cash (CD's or money market). In good years, you can draw from the stock portfolio to replenish the cash-- in bad years, you withdraw nothing.
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