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Hello All,

I've been watching the retirement portfolio for my mom with great interest. She needs to invest the cash out from her home to set up her retirement. She has approx. $125,000 to invest and was wondering if she should primarily use the "Foolish Four"? She would like to get some income by the end of the year so I was thinking of maybe using a Vanguard Bond index fund for some. She also has approx. $25,000 of Home Depot stock that she has had for alomost 3 years, should she reallocate some of this? Any suggestions would be greatly appreciated.. Thanks!
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There is a Bond and Fixed Income board where the subject of bond funds is discussed. To find it, enter Bond in the board box below and press find.

Generally, we would not recommend a bond fund for income when interest rates may be rising. You would be better off with a portfolio of laddered maturity corporate bonds or CDs. See the Bond board for more on this.

Fools would suggest that she keep most of her money in stocks. Foolish Four or one of the other stock portfolios is a good way to do this. If not that way, an S&P Index fund is a good second choice. Fools would keep only 3 to 5 years of expected expenses in bonds or treasuries--to cover you if stocks go through one of their periodic down cycles.

On Home Depot, you will have to decide for yourself. There is probably a Foolish board on that stock. Long term buy and hold is an excellent strategy. I would guess that Home Depot still has excellent growth potential. So I would keep most of it. You may want to hold it to something like 20% max of total assets. So as it grows, shifting some of it to other Rule Maker stocks could make sense.

Best of luck to you.
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First, ,,,She also has approx. $25,000 of Home Depot stock that she has had for alomost 3 years, should she reallocate some of this? Any suggestions would be greatly appreciated.. ,,,,,

Ready. NO NONO NONO NO NO NO NO>
Bond funds are going down. Interest rates are going up. You should not sell anything that generates taxs.
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