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Capital preservation implies that you can't tolerate it if your capital value goes down. This will happen with the FF4, HY10, BTD5, etc.

If you like the DDA, but are leary about the lack of diversification, you can also use the method on other stock collections. There is also Beat the S&P, Beat the Money 30, etc. Here is a calculator you can use to determine the stocks:

If you are relying on the $450k for your primary income, then the safer recommendation is to put 3-6 month's income into cash (MMF), and ladder 2-5 years income, using a 3-6 month interval, into CDs and Ts. The rest of the money goes into stocks. During an up market, you spend your interest, dividends, and some cap gain. During a down market, you spend your interest, dividends, and cash. When the market turns up, you replenish your cash.

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