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Welcome Duerre. The basic fixed income investment for the purposes you describe is probably a laddered maturity bond portfolio invested in investment grade corporate bonds with maturities maybe up to about 10 years. The ladder provides steady income, but frequent maturities gives you access to funds for unexpected expenses or you have ability to sell the bonds prior to maturity if needed.

You can improve the yield somewhat by incorporating some preferred stocks, lower rated bonds, REITs, or royalty trusts in the mix.

Fixed income investments do not have much growth potential nor do they provide much protection from inflation. For that you should invest part of the funds in stocks.

The best approach to the overall problem is to sit down and work out what your income needs are likely to be during retirement. Look at what sources of income you will have and from that how much income you need from these investments. Any beyond your basic needs should be invested in stocks.

Fooldom offers an on-line seminar on retirement planning and there are books on the subject. Otherwise, you may need the assistance of a financial planner to work out the details.

Best of luck to you.
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