No. of Recommendations: 0
Subj: Retiree's Portfolio Management
Date: 95-10-13 17:06:36 EDT
From: MartinA753
Posted on: America Online

I have been lurking around the Motley Fool for about the last 9 months and
have received an excellent education on investing. However, there is little,
if any, information or discussion directed at managing and living off of
one's portfolio. Maybe the problem is that most people my age don't even know
how to turn on a computer let alone use one.

With all due respect of a serf to the Fool. The foolish allocation, while
appropriate for an aggressive investor seeking to build his retirement funds,
is not entirely appropriate for one who needs a steady income and must live
off the returns of his investments.

Unfortunately it is difficult to find good current information on asset
allocation and modern portfolio theory. Many financial professionals regard
much of this information as proprietary and too esoteric for us mere mortals
to understand. What is easily available is dated, simplistic and of little
more than general use.

However, in the spirit of the Fool I have managed find enough good
information on the subject to obtain a modicum of knowledge. I am hopeful of
finding others willing to engage in the discussion of a retirees portfolio
and 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%, International
10%, Emerging 5%, Real Estate (REITS)5%,Hedge Assets 5%.

The bond suballocation is:Intermediate Term 17%, Long Term 2%, High Yield
2%,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 a
major issue.

Those of you still working and building your portfolio will eventually be
here. After all this is why you are a Fool.

Foolishly yours, MartinA753

Subj: Re:Retiree's Portfolio Managemen
Date: 95-10-13 23:23:09 EDT
From: TomGardner
Posted on: America Online


Frankly, even for income-hungry investors, I think Foolishness is the best
bet. 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 the
intermediate- to long-term, just to diversify into high-yielding vehicles.
Any reason to move away from the Dow approach?


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