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Subject:  Re: fixed income Date:  7/17/2000  11:19 AM
Author:  middlearth Number:  23415 of 104440

<<What types of fixed income assets would be recommended-index funds or whatever? Does the overall
mixture sound reasonable?>>

There're a number of factors to consider in this situation, so that you may have a reasonable level of security.
1- You're age at retirement-this'll determine the rate of withdrawl you'll need to make the money last the rest of your life.
2- You'll need to keep "some" money in growth stocks, to avoid the ravages of inflation over time.
3- You'll need to be careful with "fixed" income instruments(bond funds, etc.), as their yields WILL drop if interest rates go down. So, you'll want at least some of your money in "locked-in" rates; e.g. a few laddered CDs. There're also, mutual funds "dedicated" (as assumed by their names) to a "growing dividend objective." Then, there're those stocks(REITs,utilities,phone,gas,etc.) and LPs(limited partnerships that trade as stocks), which have been committed to rasing their dividends for decades.
4- After you've made a well thought out structured plan, you'll need to consult the "withdrawl tables" for the withdrawl from "principle" where the money is allocated to growth stocks, so as to make it all last. I hope this hepls.
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