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for jimlauder;

If your purpose is to generate guaranteed income, you probably want to buy bonds or a bond fund of some kind. I'd check Vanguard as the leader in minimizing management fees while providing good results. I'm suspicious of Fidelity's advice, although it's correct as far as it goes, on the hunch that they're more motivated to make money from your money that they are to help you find what's best for you.

I'm satisfied to have most of my investment capital in Vanguard Index 500 Fund and less in fixed income assets (none of them are bonds). Sure, the S&P 500 dividend from ordinary income is only a little over 1%, but capital gains count as income too and they're taxed at more favorable rates than ordinary income. With capital gains (other than what the fund realizes and sends to you each year) you retain the option of realizing those gains and paying the taxes when it suits you. Of course, you give up all guarantees this way. It's worked fine for me, with more than twenty years of having my retirement money managed to track the S&P 500.


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