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Technology Stocks : Intel Corporation (INTC)
INTC 39.85-3.8%11:46 AM EST

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To: Jim McMannis who wrote (173289)3/5/2003 3:59:42 PM
From: chomolungma  Read Replies (1) of 186894
 
Unfortunately, we have a finite time span on this earth. in 22 years I'm not going to be a spring chicken.

If you HAVE to have the money to live off of and your time frame is short (I leave that for you to define), then really you have no choice but to go with something in the fixed-income category. Unfortunately 20 yr. T-bonds are now yielding about 4 3/4% and this is taxed at ordinary rates and every year. You could increase this by buying corporates, but then you add risk. Also long-term fixed securities have a good deal of inflation risk. If we have 5% inflation, what do you think someone is going to pay you for the above security? Not much! Want to get rid of that inflation risk? OK, now you're left with T-bills and have to settle for sub 2% returns and historically these have barely matched inflation giving you a real return of 0% and if taxable a negative return.

Given the above, is it any wonder that equities will still be the investment that many choose. They are willing to take the risk to get the historical performance that equities have provided over the long haul, and in my opinion, will continue to provide.
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