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<<"His biggest fear/enemy is inflation. He needs a fair amount of money invested in stocks to compensate."

Reply: What do you recommend that would produce income which can be withdrawn on a regular basis (sounds like the $64,000 question I know)? From what I'm hearing, CD's may be the way to go for security. What about non-taxable municipal or utility bonds? How do they rate security wise? Lower than index funds...higher? Appreciate the advice.
Randy >>

Bonds or bond funds can be just as volital as stocks, just watch what happens the next time Greenspan talks about raising interest rates. The only caviat is if you hold them (individual bonds) until maturity. But then you still might get caught in a money squeeze and have to sell them at an inopurtune time, therefore, the extra % points over a CD is not worth it to me.

For me personally, I'd hold 2-3 years worth of living expenses in CDs and the rest in stocks.

JLC
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