I am not retired yet, but running the last mile in that long race. I look at my equities investment as a total return. I will not lean toward dividends because last year capital gains did the heavy lifting. Since I'm still working, I'm in municipal bonds for the tax free income, and that was pretty significant (despite, and encouragingly in light of, Detroit). I have a hefty balance in a Norwegian bank account yielding 3%, but that is a long story (carrying a US 2.875% mortgage as arbitrage, and more heavy in equities than I otherwise would be.) I have had luck with emerging markets funds in the past, but looks like dead money now and going forward. This is my X-factor. It's always funny that the investment that I wrote off for dead last year suddenly becomes the darling. Never follow the hot money. Finally, I would love to leave it all behind and get a simple annuity, but bonds have been in the dumps and will not be the 90's and early '00 high school hero they once were. Can you imagine, in the late 90's, you could buy an utterly safe and boring 30 year bond yielding 8 - 9%! I still kick myself for being young and foolish, I don't think that will ever happen again, unless the echo boom really steps it up... My 2 cents
