Subj: Retiree's Portfolio ManagementDate: 95-10-13 17:06:36 EDTFrom: MartinA753Posted on: America OnlineI have been lurking around the Motley Fool for about the last 9 months andhave received an excellent education on investing. However, there is little,if any, information or discussion directed at managing and living off ofone's portfolio. Maybe the problem is that most people my age don't even knowhow to turn on a computer let alone use one.With all due respect of a serf to the Fool. The foolish allocation, whileappropriate for an aggressive investor seeking to build his retirement funds,is not entirely appropriate for one who needs a steady income and must liveoff the returns of his investments.Unfortunately it is difficult to find good current information on assetallocation and modern portfolio theory. Many financial professionals regardmuch of this information as proprietary and too esoteric for us mere mortalsto understand. What is easily available is dated, simplistic and of littlemore than general use.However, in the spirit of the Fool I have managed find enough goodinformation on the subject to obtain a modicum of knowledge. I am hopeful offinding others willing to engage in the discussion of a retirees portfolioand its management.My view of a retirees moderate portfolio allocation overall is: Equities 65%,Bonds 25%, Cash 10%.The equity suballocation is: Large/mid Cap 30%,Small Cap 10%, International10%, Emerging 5%, Real Estate (REITS)5%,Hedge Assets 5%.The bond suballocation is:Intermediate Term 17%, Long Term 2%, High Yield2%,International 2%,Municipal 2%.Cash is: Money Market, CDs, Short Term Bonds (1 yr or less)The majority of the assets are in an IRA so the tax considerations are not amajor issue.Those of you still working and building your portfolio will eventually behere. After all this is why you are a Fool.Foolishly yours, MartinA753 Subj: Re:Retiree's Portfolio ManagemenDate: 95-10-13 23:23:09 EDTFrom: TomGardnerPosted on: America OnlineMartin,Frankly, even for income-hungry investors, I think Foolishness is the bestbet. Why not load up on Beating the Dow stocks and collect the dividends.I just don't think it's worth it to compromise superior results in theintermediate- to long-term, just to diversify into high-yielding vehicles.Any reason to move away from the Dow approach?TG
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