A Family Will Retire in a Few Years

A family will retire in a few years. They have a high tax bracket and are concerned about their after-tax rate of return. A meeting with their financial planner reveals they are primarily focused on safety of principal and they will need a 6% to 8% average rate of return on their portfolio. They desire a diversified portfolio and liquidity is likely to be a concern due to health reasons. If you had to choose from the list below which of the following asset allocations seems to best fit this family's situation?

A) 10% money market; 50% intermediate term bonds; 40% blue chip shares, many with high dividend yields
B) 0% money market; 60% intermediate term bonds; 40% shares
C) 10% money market; 30% intermediate term bonds; 60% high dividend paying shares
D) 5% money market; 35% intermediate term bonds; 60% shares, most with low dividends