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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 76.01-1.9%Dec 17 3:59 PM EST
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To: michael97123 who wrote (52836)5/10/2001 5:36:31 PM
From: Stock Farmer  Read Replies (2) of 77400
 
Hi Mike - yes, boomers in early retirement or pre-retirement will all require *some* growth in their portfolios (where I classify "growth" as stocks that are expected to deliver capital gains rather than dividend income).

Often lost is that point to discuss is not a binary zero or 100% weighting, but a shift of the balance point. Currently sitting somewhere north of 80% if I remember my figures correctly. Maybe cleaving the demand in half or so (40% growth is very heavy weight for someone at retirement). Also you will see quarterly or annual rebalancing, where prudant fiscal harvesting means taking profits and shifting money off the table.

And certainly no MORE post-retirement investment will go into the growth side. Any funds not used will probably be directed through dividend reinvestment rather than DCA into a growth fund. My MO for example goes back into MO shares and so on. But you won't see CSCO dividends going to buy CSCO shares.

So you will see (a) a divestiture, and (b) a reduction in incoming money flows. Likely to affect all of the dividendless tech genre.

This is a distinct shift from today, where the predominant pattern of money flow is, as mindmeld indicated, DCA input into growth.

John.
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