I’m probably 5 years away from retirement. I have aninflation-protected pension that covers 65% of my anticipated monthly income needs in retirement (and I have estimated my “needs” generously, including foreign travel, contributions to favorite charities, etc.).  The remaining 35% is to come from my investments. 

As I am moving closer to retirement, I am making somechanges in my portfolio.  Between 20 and 25% of my retirement funds are individual stocks, the rest in mutual funds that are primarily invested in equities.  My funds are well-diversified, with about a third of the money in international funds (mostly developed economies, but one emerging markets fund).  As I sell individual stocks, I’m replacing them with dividend-paying stocks.  I am looking at any changes I should make to my mutual funds as well.  

I don’t currently have any fixed-income investments, as I have considered my inflation-protected pension to serve the purpose of fixedincome investments.  I am re-evaluating that decision as I move closer to retirement.

I expect to have 3 years of the income I will need from my investments in cash (outside my retirement accounts) when I retire.

I’d appreciate your thoughts about my general plan.  Do you think I’m on the right track?  Is there something I haven’t thought of as I move toward an “in retirement” portfolio?