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Author: middlearth Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76384  
Subject: Re: Shifting assets prior to retirement Date: 5/5/1998 10:57 PM
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Minna,
It is true that preferreds DO get called in, and that's their drawback. Another idea is to look into what are known as "tranches." These are mortgage backed securities that one can buy through brokers. One can scatter their maturities, so as to have regular income at specific intervals.

>Do utilities continue to be the high yielders they have in the past? I seem to have read something
recently about utilities cutting back their dividends.<

Utilities, in all probability, will continue to pay higher dividends than the average stock. And, yes, some of them did cut back their dividends- but claimed that it was a one-time recup of their losses over the years due to power plant over-expenditures.

>The most productive and least taxable way to switch
from low-yielding growth stocks to high-yielding stocks for retirement income is what I'm trying to
get a grip on.<

The only way that I can think of would be to cash them in after the beginning of the year in which you retire.
All said, even in retirement, portfolios DO need to be actively managed.
Regards,
Eddie
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