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Simon,

This is for people in their 70s whose primary concern is stability and capital preservation.

Actually, the better allocation for retired folks, in normal economic conditions, consists of

>> 50% in income vehicles, such as "investment grade" bonds, and

>> 50% in growth vehicles, such as stocks of well-run corporations, to offset inflation.

The objective is to live off the interest or other earnings paid by the former and to rebalance periodically so one's income will grow to offset inflation.

Backing up a step, some people who are now in their 70's probably will live another 30-40 years or more. Traditional retirement planning assumes that one's money has to last for one's life expectancy, but I would hate to be the poor sap who lives to 110 after the money ran out at 95!

Norm.
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