Retirees - Capital Preservation
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By thinkahead100
July 7, 2008

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From the vantage point of 83 years of age and 20 years as a retiree, I recognize the challenges that come as we age. My investment challenge in our present market environment, on this date of July 2008, is my short term goal to outlive my retirement capital resources by managing my portfolio within a Capital Preservation strategy.

Here is a snapshot of my portfolio, which is not performing well and requires a retooling. I would welcome advice from the TMF team and retirees who have experience in managing a capital preservation strategy.

1. Asset Allocations: Cash 63.1%, Stocks 29.7 %, Bonds 7.2 %

Cash: short term (6 to 12 months) CDs and Savings Accounts.

Stocks: Berkshire Hathaway B, Home Depot, Schlumberger, Power Shares QQQ, Evergreen Omega A Fund, Vanguard Windsor II Fund and Vanguard Total Stock Market Fund.

Bonds: Vanguard Short Term Federal and Vanguard Long Term Tax Exempt.

2. Income Sources: Social Security (wife & husband), Pensions (wife and husband), Evergreen Omega A Fund monthly distribution, Vanguard Money Market Fund monthly withdrawal.

3. I recently sold 2 preferred stocks, MBNA CAP E and PUBLIC STORAGE that distributed quarterly dividends as part of my income. I temporarily deposited the proceeds $27,780 into my Savings Account. What advice can you offer to recover $2,636 income per year?

4. What advice can you offer regarding my stocks and bonds investments? Berkshire and Schlumberger are performing well. The other stocks and funds are sick. The bonds are performing ok providing income but I am open to other suggestions.

Many thanks