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Thanks for your advice. I have a 401k that I contribute all new monies to. That may be where I have to get the fixed instrument. Isn't 20% a little high for someone with a 20+ year horizon?

I used to think so but have changed my mind. To my way of thinking, a 20% bond position allows for un-emotional rebalancing of your stock gains. When the market is hot, when you rebalance you will buy bonds at their lows and sell stocks at their highs. Then when the market tanks, you are selling bonds at their highs and buying stocks at their lows. If you read anything about modern portfolio theory, it is this mechanical rebalancing, over time, that really drives returns and creates wealth.

80-20 is extremely aggressive in any time horizon (bonds have outperformed stocks for the last 10 years I believe). 100% in stocks (or any one investment class) is an extreme bet that I don't think you will be rewarded for.

The problem with bonds, especially in 401Ks, is that you have to buy bond funds usually. These are not the best vehicles, but what can you do?
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