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I was talking to my dad yesterday who is 56 about asset allocation. He has about 4 more years before retiring and is considering rolling his 403b over into an IRA at Vanguard. He apparently doesn't like the Security Distributors, Inc actively managed funds available. He's currently 100% in an S&P500-like fund (large cap). He has a modest rental house and a would have a modest pension.

We talked about two things and I'd love your input:

1. What % equities vs. bonds?
2. What should his bond funds look like?

A couple of our assumptions are:

* While he has medical issues, we're thinking he'll like a long time. His mom lived close to 90 and his dad was well into 90s. So, investment timeframe and other income could allow him to be more aggressive

* He's not the kind of guy to go online or do active trading/research. Therefore, whatever he chooses has to be a sort of "fix it and forget it" model.

* I had suggested indexes for his equity portion: Vanguard Index funds for a) large cap b) small cap c) int'l and d) REIT. Just plain vanilla.

* Any money he has in cash will most likely be in and out. He's not a saver outside of his retirement funds and would most likely blow any money he tried to save outside of his funds.

Frankly, though, I really don't know what to suggest from a bond pov.

I've read the FAQ's, I've read " the only guide to a winning bond strategy", this board, 4 pillars of investing, etc. And I'm just not sure.

Any thoughts/advice or pointers to other resources to study?

Thanks!
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