DREYFUS LIFETIME PORTFOLIOS INC, N-30D, 1996-12-06

DREYFUS LIFETIME PORTFOLIOS INC
N-30D, 1996-12-06

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DREYFUS LIFETIME PORTFOLIOS, INC.
LETTER TO SHAREHOLDERS
Dear Shareholder:
It is a pleasure to report that the Growth and the Growth and Income
Portfolios of Dreyfus LifeTime Portfolios, Inc. once again outperformed their
respective Customized Blended Indices for the fiscal year ended September 30,
1996. The Income Portfolio, which is passively managed, underperformed its
Customized Blended Index for the year.
The following summarizes the 12-month performances ended 9/30/96:
<TABLE>
<CAPTION> LEHMAN BROTHERS
GOVERNMENT/CORPORATE
CUSTOMIZED STANDARD & POOR'S 500 INTERMEDIATE
PORTFOLIO PORTFOLIO BLENDED INDEX COMPOSITE STOCK PRICE INDEX BOND INDEX
(CLASS) TOTAL RETURN* TOTAL RETURN** TOTAL RETURN TOTAL RETURN
____ ____________ _____________ ___________________________ __________________
<S> <C> <C> <C> <C>
GROWTH
Institutional Shares 19.58% 16.24% 20.32% 5.13%
Retail Shares 19.73% 16.24%
GROWTH AND INCOME
Institutional Shares 14.84% 12.58%
Retail Shares 14.17% 12.58%
INCOME
Institutional Shares 7.07% 8.84%
Retail Shares 7.30% 8.84%
</TABLE>
A Customized Blended Index is utilized by each Portfolio in order to
provide a more accurate performance comparison to the
respective Portfolio's baseline asset allocation. For each Portfolio, the
Customized Blended Index reflects the target percentages of stocks, bonds and
money market instruments, weighted by the return of the broad market index
that is representative for the particular asset class, as set forth in the
Fund's Prospectus. Performance for the Standard & Poor's 500 Composite Stock
Price Index has been included as the broad-based securities benchmark for the
Growth Portfolio and the Growth and Income Portfolio. The Lehman Brothers
Government/Corporate Intermediate Bond Index is the broad-based securities
benchmark for the Income Portfolio.
The following report describes the general economic situation and the
market environment in which the Fund operated in recent months, and then
explains the policies and market strategies for each Portfolio.
ECONOMIC REVIEW
The Federal Reserve Board (the "Fed") twice in recent months has thwarted
market expectations for policy tightening, perhaps to test the hypothesis
that somewhat faster economic growth won't foster inflation. So far, rising
wages and a tight labor market have failed to boost price indices. Yet the
U.S. business cycle is now entering the late-cycle phase when inflationary
pressures typically emerge.
Although profit growth slowed in 1996, better profit growth may be in
prospect for some economic sectors next year. The Fed's stance has caused
short-term interest rates to become quite volatile, although long-term rates
have held fairly steady since the spring. True to form, the U.S. business
cycle is entering the late-cycle phase and we believe that this portends
sustained steady growth ahead.
In 1996, the unemployment rate has plunged toward 5% while wage growth
has exceeded price inflation for the first time since 1989. Yet there is
little evidence to date of rising price inflation, prompting the Fed to leave
its interest rate policy unchanged. This is very different from 1994 when the
Fed preemptively hiked interest rates to stem a future price inflation that
subsequently did not materialize.
Real Gross Domestic Product grew 3.3% in the first half, led by strong
manufacturing, housing and consumer sectors. Since midyear, home sales have
reached new cyclical highs, orders for exports and capital goods have
resurged, and many foreign economies are improving. However, despite
favorable income growth, high confidence and better job security, consumer
spending has been lackluster since midyear. This has caused many analysts to
conclude that the economy has shifted to a slower growth. Corporate profit
growth decelerated in 1996, chiefly reflecting lagging midcycle slowdowns in
some sectors (resource industries, exports, capital goods). Many of these
sectors are now improving.
As we start the fourth quarter of the year, interest rates are actually
little different than they were in the spring. Should new inflation signs
begin to emerge, then both short- and long-term rates would likely rise.
As the U.S. economy moves into the late-cycle phase it is, as usual, out
of sync with business cycles overseas which, by and large, are at a much
earlier stage. This portends faster world growth in 1997. Hopefully, the U.S.
economy can participate in a world economy that is accelerating in growth
without igniting inflation.
MARKET OVERVIEW
For the past 12 months, the securities market, in addition to the usual
influences such as corporate profits and economic activity, have taken their
principal cues from the Federal Reserve.
Indeed, the market's expectations concerning the Fed had more impact on
interest rates and securities prices than any actions of the Fed. A year ago,
the central bank was still very concerned about excessive economic growth and
therefore was still raising interest rates. Starting last February, however,
the Fed became concerned about a possible recession. For the rest of the
period through September 30, 1996, the Fed left interest rates alone.
The markets, however, were not so passive. Last spring, a strong rise
began in all the broad market indexes. In the early summer, technology issues
and some other categories appeared to have outrun their
prospects for the time being and a reaction set in. By late June, the economy
was still expanding strongly, as indicated by impressive growth in
employment. This led the markets to expect a corrective move by the Federal
Reserve. Accordingly, prices of blue chips and particularly smaller, more
volatile issues retreated.
The decline, however, was short-lived. The economic numbers continued
showing signs of growth, but at a moderate pace. Then a guessing game began
among investors as to what the Fed's next move might be. At its late
September meeting, the Fed decided not to intervene in the credit market.
That was a signal to the markets to continue the climb that had in fact
gotten underway in anticipation that the Fed might keep hands off. This was
the background for the record-breaking equity performances that occurred in
late September and early October.
PORTFOLIO OVERVIEW
As you know, Dreyfus LifeTime Portfolios, Inc. offers three distinctly
different Portfolios, each with its own parameters of risk tolerance and time
horizon for the investor.
The Portfolio with the highest risk factor, and hence designed for the
investor with the longest time horizon, is the Growth Portfolio. This
Portfolio is now at its maximum weighting for domestic equities, which
precludes holding any bonds. The allocation can vary significantly from
baseline weights and the asset allocation decisions are implemented by using
Mellon Equity's disciplined equity allocation process.
At the end of the fiscal period, the Portfolio was 100% invested in
equities, of which 90% were domestic. The target allocation was 54.4% to
large capitalization domestic stocks. The Portfolio's actual allocation was
70.2% at this time. Target allocations for small cap stocks for this
Portfolio would have been 13.6%, but we held 18.3% at period-end. The target
is 17% for bonds. We held none at period-end. Stocks outperformed bonds
during the reporting period, and we believe that the active asset allocation
and stock selection implemented for this Portfolio contributed to the
Portfolio's outperforming its Customized Blended Index.
The Growth and Income Portfolio was designed for an investor with an
intermediate time horizon; this Portfolio was also overweighted in equities
compared to its target allocations. At fiscal year-end, Growth and Income
held 47.3% in large caps compared to a target level of 36%; and held 12.2% in
small caps compared to the target level of 9%. International equities equaled
the target level of 5%, but bonds constituted 33.2% compared to 45% for the
target level for this Portfolio. As was the case with the Growth Portfolio,
we believe the active asset allocations and stock selections implemented for
the Growth and Income Portfolio contributed to its outperforming its
Customized Blended Index.
The Income Portfolio is intended for more conservative investors. Under
normal conditions, the Portfolio can be expected to stick to the allocations
defined in the Prospectus, and by design, does not shift between asset
classes as market conditions change. The Portfolio is passively managed using
an index-based approach. However, the Portfolio underperformed its Customized
Blended Index due to reductions for Portfolio fees and expenses.
In the Growth and Growth and Income Portfolios, industry sector
allocations mirror the industry makeup of the Standard & Poor's 500 Composite
Stock Price Index. Thus outperformance can depend on active stock selection
within industry categories. In recent months, stock issues that have been
particularly helpful to our overall results include Nike in the apparel
sector, Safeway and Coca-Cola among consumer
nondurables, Intel, Microsoft and Cisco Systems in the technology group and
Abbott Laboratories among the pharmaceuticals.
We very much appreciate your investment in Dreyfus LifeTime Portfolios.
You may be assured that we will continue to devote our best efforts to
obtaining rewarding returns on the Portfolios you have entrusted to our care.
Sincerely,
[Steven A. Falci signature logo]
Steven A. Falci
Portfolio Manager
November 1, 1996
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains paid.

**For the Growth Portfolio, the Customized Blended Index has been prepared by
the Fund for purposes of more accurate comparison to the Portfolio's overall
portfolio composition. We have combined the performance of unmanaged indices
reflecting the baseline percentages set forth in the Prospectus, but in
greater detail than the broader Prospectus Baseline percentages: Domestic
Large Company Stocks _ 54.4%; Domestic Small Company Stocks _ 13.6%;
Foreign Stocks _ 12.0%; Domestic Bonds _ 17.0%; and Foreign Bonds _ 3.0%.
The Customized Blended Index combines returns from the Standard & Poor's 500
Composite Stock Price Index ("S&P 500 Index"), the Russell 2000 Index, the
Morgan Stanley Capital International Europe, Australasia, Far East (Free)
Index - hedged, $U.S. ("EAFE" Index); the Lehman Brothers Intermediate
Government/Corporate Bond Index ("Lehman Index") and the J.P. Morgan Non-U.S.
Government Bond Index_Hedged ("J.P. Morgan Global Index") and is weighted to
the aforementioned Baseline percentages. The S&P 500 Index is a widely
accepted, unmanaged index of overall stock market performance. The Russell
2000 Index is an unmanaged index and is composed of the 2,000 smallest
companies in the Russell 3000 Index. The Russell 3000 Index is composed of
the largest U.S. companies by market capitalization. The EAFE Index, which is
the property of Morgan Stanley & Co., Incorporated, is an unmanaged index
composed of a sample of companies representative of the market structure of
European and Pacific Basin countries and includes net dividends reinvested.
The Lehman Index is a widely accepted, unmanaged index of Government and
Corporate bond market performance composed of U.S. Government Treasury and
agency securities, fixed-income securities and nonconvertible investment
grade corporate debt, with an average maturity of 1-10 years. The J.P. Morgan
Global Index is an index that measures returns on bonds from 12 world
markets, hedged into U.S. dollars. This index does not include a U.S. Bonds
component. None of the foregoing indices reflect account charges, fees or
other expenses.
For the Growth and Income Portfolio, we have combined the performance of
unmanaged indices reflecting the baseline percentages set forth in the
Prospectus, but in greater detail than the broader Prospectus Baseline
percentages: Domestic Large Company Stocks _ 36%; Domestic Small Company
Stocks _ 9%; Foreign Stocks _ 5%; Domestic Bonds _ 45%; and Foreign Bonds
_ 5%. The Customized Blended Index combines returns from the S&P 500 Index,
the Russell 2000 Index, the EAFE Index, the Lehman Index and the J.P. Morgan
Global Index and is weighted to the aforementioned Baseline percentages. The
indices are described above.
For the Income Portfolio, we have combined the performance of unmanaged
indices reflecting the baseline percentages set forth in the Prospectus, but
in greater detail than the broader Prospectus Baseline percentages: Bonds _
67.5%; Stocks _ 22.5%; and Treasury Bills _ 10%. The Customized Blended
Index combines returns from the Lehman Index, the S&P 500 Index (described
above) and the 90-day Treasury Bill rate, as it changes from time to time,
and is weighted to the aforementioned Baseline percentages.

DREYFUS LIFETIME PORTFOLIOS, INC., Income Portfolio September 30, 1996
[Exhibit A]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE INSTITUTIONAL
SHARES AND RETAIL SHARES OF DREYFUS LIFETIME PORTFOLIOS, INC.-INCOME
PORTFOLIO WITH THE LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CORPORATE BOND
INDEX AND A CUSTOMIZED BLENDED INDEX

$11,856
Customized
Blended Index**
Dollars
$11,615
Dreyfus LifeTime
Portfolios-Income
Portfolio (Retail Shares)
$11,573
Dreyfus LifeTime
Portfolios-Income
Portfolio
(Institutional Shares)
$11,221
Lehman Brothers
Intermediate
Government/Corporate
Bond Index*
[Exhibit A]
* Source: Lehman Brothers
**Source: Lehman Brothers, Lipper Analytical Services, Inc., and The Wall
Street Journal
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
INSTITUTIONAL SHARES RETAIL SHARES
__________________________________________________________ _____________________________________
PERIOD ENDED 9/30/96 PERIOD ENDED 9/30/96
______________________________ _____________________________________
<S> <C> <S> <C>
1 Year 7.07% 1 Year 7.30%
From Inception (3/31/95) 10.22 From Inception (3/31/95) 10.49
</TABLE>
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in each of the
Institutional shares and Retail shares of the Income Portfolio on 3/31/95
(Inception Date) to a $10,000 investment made in the Lehman Brothers
Intermediate Government/Corporate Bond Index on that date as well as to a
Customized Blended Index reflecting the Portfolio's asset allocation baseline
percentages ("Baseline") which are described below and in the Fund's
prospectus. All dividends and capital gain distributions are reinvested.
The Income Portfolio allocates your money among domestic bonds and stocks and
money market instruments. The Portfolio's performance shown in the line graph
takes into account all applicable fees and expenses. The Lehman Brothers
Intermediate Government/Corporate Bond Index is a widely accepted index of
bond market performance which does not take into account charges, fees and
other expenses. The Lehman Brothers Intermediate Government/Corporate Bond
Index ("Lehman Index") was selected because (1) government and corporate
bonds represent the highest Baseline percentage of the Portfolio and (2) the
fixed-income portion of the Portfolio is invested to represent the Lehman
Index. The Customized Blended Index has been prepared by the Fund for
purposes of more accurate comparison to the Portfolio's overall portfolio
composition. We have combined the performance of unmanaged indices reflecting
the Baseline percentages set forth in the Prospectus, but in greater detail
than the broader prospectus Baseline percentages: Bonds - 67.5%; Stocks -
22.5%; and Treasury Bills - 10%. The Customized Blended Index combines
returns from the Lehman Index, the Standard & Poor's 500 Composite Stock
Price Index ("S&P 500 Index") and the 90-day Treasury Bill rate, as it changes
from time to time, and is weighted to the aforementioned Baseline
percentages. The Lehman Index is a widely accepted, unmanaged index of
Government and Corporate bond market performance composed of U.S. Government,
Treasury and agency securities, fixed-income securities and nonconvertible
investment grade corporate debt, with an average maturity of 1-10 years. The
S&P 500 Index is a widely accepted, unmanaged index of overall stock market
performance. None of the foregoing indicies reflect account charges, fees or
other expenses. Further information relating to the Portfolio's performance,
including expense reimbursements, if applicable, is contained in the
Financial Highlights section of the Prospectus and elsewhere in this report.

DREYFUS LIFETIME PORTFOLIOS, INC., Growth and Income Portfolio
[Exhibit B] September 30, 1996
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE INSTITUTIONAL
SHARES AND RETAIL SHARES OF DREYFUS LIFETIME PORTFOLIOS, INC.-GROWTH AND
INCOME PORTFOLIO WITH THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX
AND A CUSTOMIZED BLENDED INDEX

$14,226
Standard & Poor's 500
Composite Stock
Price Index*
Dollars
$13,128
Dreyfus LifeTime
Portfolios-Growth and
Income Portfolio
(Institutional Shares)
$13,070
Dreyfus LifeTime
Portfolios-Growth and
Income Portfolio
(Retail Shares)
$12,655
Customized Blended
Index**
[Exhibit B]
* Source: Lipper Analytical Services, Inc.
**Source: Lipper Analytical Services, Inc., Lehman Brothers, Morgan Stanley &
Co. Incorporated and J.P. Morgan & Co. Incorporated.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
INSTITUTIONAL SHARES RETAIL SHARES
________________________________________________________ _______________________________________________
PERIOD ENDED 9/30/96 PERIOD ENDED 9/30/96
________________________________________________________ _______________________________________________
<S> <C> <S> <C>
1 Year 14.84% 1 Year 14.17%
From Inception (3/31/95) 19.88 From Inception (3/31/95) 19.53
</TABLE>
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in each of the
Institutional shares and Retail shares of the Growth and Income Portfolio on
3/31/95 (Inception Date) to a $10,000 investment made in the Standard &
Poor's 500 Composite Stock Price Index ("S&P 500 Index") on that date as well
as to a Customized Blended Index reflecting the Portfolio's asset allocation
baseline percentages ("Baseline") which are described below and in the Fund's
prospectus. All dividends and capital gain distributions are reinvested.
The Growth and Income Portfolio allocates your money among domestic and
foreign stocks and bonds. The Portfolio's performance shown in the line graph
takes into account all applicable fees and expenses. The S&P 500 Index is a
widely accepted, unmanaged index of overall stock market performance which
does not take into account charges, fees and other expenses. The S&P 500
Index was selected because (1) domestic common stocks represent a significant
portion of the Baseline and (2) the majority of the stock portion of the
Portfolio is invested in stocks included in the S&P 500 Index. Because the
Portfolio has significant fixed-income holdings, though, it can underperform
an equity-only index. The Customized Blended Index has been prepared by the
Fund for purposes of more accurate comparison to the Portfolio's overall
portfolio composition. We have combined the performance of unmanaged indices
reflecting the Baseline percentages set forth in the Prospectus, but in
greater detail than the broader prospectus Baseline percentages: Domestic
Large Company Stocks - 36%; Domestic Small Company Stocks - 9%; Foreign
Stocks - 5%; Domestic Bonds - 45%; Foreign Bonds - 5%. The Customized Blended
Index combines returns from the S&P 500 Index, the Russell 2000 Index, the
Morgan Stanley Capital International Europe, Australasia, Far East (Free)
Index-Hedged, $U.S. ("EAFE Index"), the Lehman Brothers Intermediate
Government/Corporate Bond Index ("Lehman Index") and the J.P. Morgan Non-U.S.
Government Bond Index - Hedged ("J.P. Morgan Global Index"), and is weighted
to the aforementioned Baseline percentages. The Russell 2000 Index is an
unmanaged index and is composed of the 2,000 smallest companies in the
Russell 3000 Index. The Russell 3000 Index is composed of the largest U.S.
companies by market capitalization. The EAFE Index, which is the property of
Morgan Stanley & Co. Incorporated, is an unmanaged index composed of a sample
of companies representative of the market structure of European and Pacific
Basin countries and includes net dividends reinvested. The Lehman Index is a
widely accepted, unmanaged index of Government and Corporate bond market
performance composed of U.S. Government, Treasury and agency securities,
fixed-income securities and nonconvertible investment grade corporate debt,
with an average maturity of 1-10 years. The J.P. Morgan Global Index is an
index Portfolio that measures returns on bonds from 12 world markets, hedged
into U.S. dollars. This index does not include a U.S. bonds component. None
of the foregoing indicies reflect account charges, fees or other expenses.
Further information relating to the Portfolio's performance, including
expense reimbursements, if applicable, is contained in the Financial
Highlights section of the Prospectus and elsewhere in this report.

DREYFUS LIFETIME PORTFOLIOS, INC., Growth Portfolio September 30, 1996
[Exhibit C]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE INSTITUTIONAL
SHARES AND RETAIL SHARES OF DREYFUS LIFETIME PORTFOLIOS, INC.-GROWTH
PORTFOLIO WITH THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX AND A
CUSTOMIZED BLENDED INDEX

Dollars
$14,226
Standard & Poor's 500
Composite Stock
Price Index*
$14,214
Dreyfus LifeTime
Portfolios-Growth
Portfolio (Retail Shares)
$14,177
Dreyfus LifeTime
Portfolios-Growth
Portfolio
(Institutional Shares)
$13,420
Customized Blended
Index**
[Exhibit C]
* Source: Lipper Analytical Services, Inc.
**Source: Lipper Analytical Services, Inc., Lehman Brothers, Morgan Stanley &
Co. Incorporated and J.P. Morgan & Co. Incorporated
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
INSTITUTIONAL SHARES RETAIL SHARES
_____________________________________________________ ______________________________________________
PERIOD ENDED 9/30/96 PERIOD ENDED 9/30/96
______________________________________________________ ______________________________________________
<S> <C> <S> <C>
1 Year 19.58% 1 Year 19.73%
From Inception (3/31/95) 26.18 From Inception (3/31/95) 26.40
</TABLE>
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in each of the
Institutional shares and Retail shares of the Growth Portfolio on 3/31/95
(Inception Date) to a $10,000 investment made in the Standard & Poor's 500
Composite Stock Price Index ("S&P 500 Index") on that date as well as to a
Customized Blended Index reflecting the Portfolio's asset allocation baseline
percentages ("Baseline") which are described below and in the Fund's
prospectus. All dividends and capital gain distributions are reinvested.
The Growth Portfolio allocates your money among domestic and foreign stocks
and bonds. The Portfolio's performance shown in the line graph takes into
account all applicable fees and expenses. The S&P 500 Index is a widely
accepted, unmanaged index of overall stock market performance which does not
take into account charges, fees and other expenses. The S&P 500 Index was
selected because (1) domestic common stocks represent the highest Baseline
percentage of the Portfolio's assets and (2) the majority of the stock
portion of the Portfolio is invested in stocks included in the S&P 500 Index.
The Customized Blended Index has been prepared by the Fund for purposes of
more accurate comparison to the Portfolio's overall portfolio composition. We
have combined the performance of unmanaged indices reflecting the Baseline
percentages set forth in the Prospectus, but in greater detail than the
broader prospectus Baseline percentages: Domestic Large Company Stocks -
54.4%; Domestic Small Company Stocks - 13.6%; Foreign Stocks - 12.0%;
Domestic Bonds - 17.0%; and Foreign Bonds - 3.0%. The Customized Blended
Index combines returns from the S&P 500 Index, the Russell 2000 Index, the
Morgan Stanley Capital International Europe, Australasia, Far East (Free)
Index-Hedged, $U.S.("EAFE Index"), the Lehman Brothers Intermediate
Government/Corporate Bond Index ("Lehman Index") and the J.P. Morgan Non-U.S.
Government Bond Index-Hedged ("J.P. Morgan Global Index") and is weighted to
the aforementioned Baseline percentages. The Russell 2000 Index is an
unmanaged index and is composed of the 2,000 smallest companies in the
Russell 3000 Index. The Russell 3000 Index is composed of the largest U.S.
companies by market capitalization. The EAFE Index, which is the property of
Morgan Stanley & Co. Incorporated, is an unmanaged index composed of a sample
of companies representative of the market structure of European and Pacific
Basin countries and includes net dividends reinvested. The Lehman Index is a
widely accepted, unmanaged index of Government and Corporate bond market
performance composed of U.S. Government, Treasury and agency securities,
fixed-income securities and nonconvertible investment grade corporate debt,
with an average maturity of 1-10 years. The J.P. Morgan Global Index is an
index Portfolio that measures returns on bonds from 12 world markets, hedged
into U.S. dollars. This index does not include a U.S. bonds component. None
of the foregoing indicies reflect account charges, fees or other expenses.
Further information relating to the Portfolio's performance, including
expense reimbursements, if applicable, is contained in the Financial
Highlights section of the Prospectus and elsewhere in this report.
<TABLE>
<CAPTION>
DREYFUS LIFETIME PORTFOLIOS, INC., Income Portfolio
STATEMENT OF INVESTMENTS SEPTEMBER 30, 1996
PRINCIPAL
BONDS AND NOTES-66.7% AMOUNT VALUE
___________ ___________
<S> <C> <C>
U.S. GOVERNMENT SECURITIES: U.S. Treasury Bonds;
10.75%, 8/15/2005.................... $ 600,000 $ 759,281
___________
U.S. Treasury Notes:
7.50%, 1/31/1997..................... 615,000 619,228
5.625%, 1/31/1998.................... 2,550,000 2,539,242
5.875%, 4/30/1998.................... 375,000 374,238
5.875%, 8/15/1998.................... 1,000,000 995,938
5.125%, 11/30/1998................... 550,000 538,742
8.875%, 2/15/1999.................... 225,000 238,113
6%, 8/15/1999........................ 800,000 794,500
7.125%, 9/30/1999.................... 1,000,000 1,022,813
8.75%, 8/15/2000..................... 1,300,000 1,403,391
7.75%, 2/15/2001..................... 500,000 524,844
8%, 5/15/2001........................ 1,150,000 1,220,437
7.875%, 8/15/2001.................... 300,000 317,203
7.50%, 11/15/2001.................... 180,000 187,847
6.25%, 2/15/2003..................... 700,000 689,063
7.875%, 11/15/2004................... 110,000 118,250
7.50%, 2/15/2005..................... 1,450,000 1,526,125
6.50%, 5/15/2005..................... 325,000 321,293
6.875%, 5/15/2006.................... 200,000 202,313
___________
13,633,580
___________
TOTAL BONDS AND NOTES
(cost $ 14,532,834).................. $14,392,861
============
SHORT-TERM INVESTMENTS- 32.9%
U.S. TREASURY BILLS: 5.09%, 10/3/1996....................... $ 497,000 $ 496,866
5.08%, 10/10/1996...................... 140,000 139,832
5.13%, 10/17/1996...................... 160,000 159,653
5.06%, 11/7/1996....................... 3,024,000 3,008,698
5.04%, 11/14/1996...................... 1,750,000 1,739,465
5.04%, 11/21/1996...................... (a) 727,000 721,940
5.09%, 12/12/1996...................... 849,000 840,578
___________
TOTAL SHORT-TERM INVESTMENTS
(cost $ 7,105,982)................... $ 7,107,032
============
TOTAL INVESTMENTS (cost $ 21,638,816)....................................... 99.6% $21,499,893
======== ============
CASH AND RECEIVABLES (NET).................................................. .4% $90,248
======== ============
NET ASSETS.................................................................. 100.0% $21,590,141
======== ============
NOTE TO STATEMENT OF INVESTMENTS;
(a) Partially held by the custodian in a segregated account as
collateral for open futures positions.
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS LIFETIME PORTFOLIOS, INC., Income Portfolio (continued)

STATEMENT OF FINANCIAL FUTURES SEPTEMBER 30, 1996
MARKET VALUE UNREALIZED
NUMBER OF COVERED APPRECIATION
FINANCIAL FUTURES PURCHASED; CONTRACTS BY CONTRACTS EXPIRATION AT 9/30/96
_____________ ______________ ____________ ____________
<S> <C> <C> <C> <C>
Standard & Poor's 500........................ 14 $4,839,800 December `96 $16,660
===========

See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS LIFETIME PORTFOLIOS, INC., Growth and Income Portfolio
STATEMENT OF INVESTMENTS SEPTEMBER 30, 1996
COMMON STOCKS-46.6% SHARES VALUE
__________ ___________
<S> <C> <C>
BASIC INDUSTRIES-2.9%. Champion International................. 5,100 $ 233,963
Dow Chemical........................... 3,800 304,950
duPont (E.I.) de Nemours & Co.......... 6,600 582,450
Georgia-Pacific........................ 3,000 237,375
International Paper.................... 12,200 518,500
Morton International................... 8,500 337,875
Olin................................... 1,400 117,600
Owens-Illinois......................... (a) 10,200 178,500
PPG Industries......................... 6,600 358,875
Praxair................................ 4,800 206,400
Sherwin-Williams....................... 3,100 143,762
Union Carbide.......................... 6,000 273,750
Willamette Industries.................. 1,000 65,500
___________
3,559,500
___________
CAPITAL SPENDING-10.3% 3COM................................... (a) 7,400 444,463
Applied Materials...................... (a) 6,800 187,850
COMPAQ Computer........................ (a) 7,200 461,700
Cabletron Systems...................... (a) 4,000 273,500
Case................................... 9,000 438,750
Caterpillar............................ 9,500 716,062
cisco Systems.......................... (a) 14,700 912,319
Computer Associates International...... 5,200 310,700
General Electric....................... 11,300 1,028,300
General Motors, Cl. H.................. 3,500 202,125
HBO & Co............................... 4,200 280,350
Harnischfeger Industries............... 6,800 256,700
Harsco................................. 900 56,700
HealthCare COMPARE..................... (a) 4,900 232,138
Illinois Tool Works.................... 5,300 382,263
Intel.................................. 11,000 1,049,813
LSI Logic.............................. (a) 11,500 267,375
Lockheed Martin........................ 5,700 513,713
McDonnell Douglas...................... 6,200 325,500
Microsoft.............................. (a) 10,700 1,411,063
Newbridge Networks..................... (a) 8,200 522,750
Oracle................................. (a) 15,500 659,719
Pitney Bowes........................... 4,000 210,500
Raytheon............................... 10,100 561,813
Rockwell International................. 5,400 304,425
Tellabs................................ (a) 2,400 169,500
Xerox.................................. 11,600 622,050
___________
12,802,141
___________

DREYFUS LIFETIME PORTFOLIOS, INC.,
Growth and Income Portfolio (continued)
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996
COMMON STOCKS (CONTINUED) SHARES VALUE
_______ _______
CONSUMER CYCLICAL-6.2% Black & Decker......................... 3,500 $ 145,250
Brunswick.............................. 7,200 172,800
Chrysler............................... 14,500 415,063
Dayton Hudson.......................... 17,200 567,600
Eckerd................................. (a) 10,400 291,200
Federated Department Stores............ (a) 12,600 422,100
Gannett................................ 2,100 147,788
Gap.................................... 21,300 615,038
General Motors......................... 14,000 672,000
Goodyear Tire & Rubber................. 2,200 101,475
King World Productions................. (a) 5,300 195,438
Leggett & Platt........................ 5,100 149,813
Magna International, Cl. A............. 2,700 130,275
McDonald's............................. 8,500 402,687
Mirage Resorts......................... (a) 6,900 176,813
NIKE, Cl. B............................ 4,900 595,350
New York Times, Cl. A.................. 12,300 415,125
OfficeMax.............................. (a) 5,700 79,800
Safeway................................ (a) 19,100 814,138
Sara Lee............................... 9,000 321,750
Sears, Roebuck & Co.................... 5,500 246,125
TJX Companies.......................... 13,700 491,487
V.F. Corp.............................. 2,400 144,300
Waban.................................. (a) 2,300 52,612
___________
7,766,027
___________
CONSUMER STAPLES-5.9% Avon Products.......................... 13,000 645,125
Campbell Soup.......................... 3,000 234,000
Clorox................................. 1,600 153,400
Coca-Cola.............................. 33,000 1,678,875
Coca-Cola Enterprises.................. 4,300 194,575
Eastman Kodak.......................... 6,000 471,000
Gillette............................... 8,600 620,275
Hershey Foods.......................... 8,200 412,050
IBP.................................... 16,800 390,600
Johnson & Johnson...................... 25,800 1,322,250
Philip Morris Cos...................... 9,800 879,550
Ralston-Ralston Purina Group........... 5,200 356,200
___________
7,357,900
___________
ENERGY-4.4% Amoco.................................. 3,200 225,600
British Petroleum, A.D.S............... 4,600 575,000
Chevron................................ 12,000 751,500

DREYFUS LIFETIME PORTFOLIOS, INC.,
Growth and Income Portfolio (continued)
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996
COMMON STOCKS (CONTINUED) SHARES VALUE
_______ _______
ENERGY (CONTINUED) Coastal................................ 8,600 $ 354,750
Consolidated Natural Gas............... 4,800 257,400
Exxon.................................. 10,500 874,125
PanEnergy.............................. 4,800 166,200
Phillips Petroleum..................... 12,800 547,200
Texaco................................. 7,000 644,000
Transocean Offshore.................... 4,600 281,750
USX-Marathon Group..................... 7,700 166,512
Unocal................................. 13,300 478,800
Williams Cos........................... 4,200 214,200
___________
5,537,037
___________
HEALTH CARE-4.4% Abbott Laboratories.................... 11,900 586,075
Amgen.................................. (a) 10,000 631,250
Becton, Dickinson & Co................. 14,800 654,900
Bristol-Myers Squibb................... 4,700 452,962
Columbia/HCA Healthcare................ 8,927 507,723
Medtronic.............................. 6,200 397,575
Merck & Co............................. 16,300 1,147,112
Pfizer................................. 7,600 601,350
Schering-Plough........................ 9,000 553,500
___________
5,532,447
___________
INTEREST SENSITIVE-6.6% Allstate............................... 11,700 576,225
American National Insurance............ 2,000 136,000
AmSouth Bancorp........................ 3,500 155,750
BankAmerica............................ 12,500 1,026,562
Bear Stearns Cos....................... 14,700 341,775
CIGNA.................................. 4,300 515,462
Chase Manhattan........................ 4,900 392,612
Citicorp............................... 6,000 543,750
Comerica............................... 13,800 710,700
Conseco................................ 6,100 300,425
Dean Witter, Discover & Co............. 3,400 187,000
EXEL................................... 13,600 472,600
First Chicago NBD...................... 10,000 452,500
Green Tree Financial................... 9,000 353,250
Loews.................................. 3,200 247,600
Morgan (J.P.) & Co..................... 2,400 213,300
NationsBank............................ 3,900 338,812
Oxford Health Plans.................... (a) 3,000 149,250
Republic New York...................... 2,500 172,812

DREYFUS LIFETIME PORTFOLIOS, INC.,
Growth and Income Portfolio (continued)
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996
COMMON STOCKS (CONTINUED) SHARES VALUE
_______ _______
INTEREST SENSITIVE
(CONTINUED) Standard Federal Bancorporation........ 2,600 $ 118,950
Student Loan Marketing Association..... 6,000 447,750
Travelers Group........................ 7,900 388,087
___________
8,241,172
___________
MINING & METALS-.7% ASARCO................................. 6,600 175,725
Aluminum Co. of America................ 3,000 177,000
Nucor.................................. 2,500 126,875
Phelps Dodge........................... 3,000 192,375
USX-U.S. Steel......................... 6,300 179,550
___________
851,525
___________
TRANSPORTATION-.8% CSX.................................... 10,850 547,925
Carnival, Cl. A........................ 4,900 151,900
Delta Air Lines........................ 1,600 115,200
Illinois Central, Ser. A............... 6,200 196,075
___________
1,011,100
___________
UTILITIES-4.4% AT&T................................... 8,400 438,900
Ameritech.............................. 15,800 831,475
BellSouth.............................. 15,200 562,400
Consolidated Edison.................... 13,500 374,625
DQE.................................... 6,700 186,762
Entergy................................ 23,200 626,400
Frontier............................... 10,100 268,912
GPU.................................... 12,000 369,000
MCI Communications..................... 21,600 553,500
Pacific Gas & Electric................. 8,500 184,875
Pinnacle West Capital.................. 5,000 148,125
SBC Communications..................... 12,800 616,000
WorldCom............................... (a) 17,500 374,062
___________
5,535,036
___________
TOTAL COMMON STOCKS
(cost $55,791,614)................... $58,193,885
===========

PRINCIPAL
NOTES AND BONDS-33.1% AMOUNT
_________
BASIC INDUSTRIES-0.5% duPont (E.I.) de Nemours & Co., Deb.,
8.50%, 2/15/2001..................... $ 250,000 $ 265,646
International Paper, Notes,
7%, 6/1/2001......................... 300,000 301,493
___________
567,139
___________

DREYFUS LIFETIME PORTFOLIOS, INC.,
Growth and Income Portfolio (continued)
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996
PRINCIPAL
NOTES AND BONDS (CONTINUED) AMOUNT VALUE
_______ _______
CAPITAL SPENDING-.8% WMX Technologies, Notes,
6.375%, 12/1/2003.................... $ 1,000,000 $ 963,203
___________
CONSUMER CYCLICAL-1.1% General Motors, Notes,
7.10%, 3/15/2006..................... 350,000 344,313
Penney (J.C.), Deb.,
9.05%, 3/1/2001...................... 1,000,000 1,081,915
___________
1,426,228
___________
HEALTH CARE-.8% American Home Products, Notes,
7.70%, 2/15/2000..................... 1,000,000 1,031,509
___________
INTEREST SENSITIVE-4.8% American General, Notes,
7.75%, 4/1/2005...................... 500,000 514,888
Associated N.A., Sr. Notes,
6%, 6/15/2000........................ 1,000,000 976,177
Avco Financial, Sr. Notes,
5.50%, 5/1/1998...................... 330,000 326,245
BankAmerica, Sub. Notes,
7.875%, 12/1/2002.................... 1,000,000 1,041,849
Citicorp, Sub. Notes,
6.375%, 1/15/2006.................... 250,000 233,534
Dean Witter, Discover & Co., Notes,
6.30%, 1/15/2006..................... 250,000 231,737
Ford Motor Credit, Notes:
5.75%, 1/25/2001..................... 250,000 240,052
7.75%,11/15/2002..................... 450,000 465,354
Norwest Financial, Sr. Notes,
7.875%, 2/15/2002.................... 1,000,000 1,044,116
Province of Ontario, Bonds,
7%, 8/4/2005......................... 200,000 198,950
Santander Finance, Gtd. Sub. Notes,
7.25%, 5/30/2006..................... 400,000 394,630
Wells Fargo,Sub. Notes,
8.375%, 5/15/2002.................... 250,000 265,807
___________
5,933,339
___________
U.S. GOVERNMENT &
AGENCIES-25.1% Federal National Mortgage Association
8.50%, 2/1/2000...................... 500,000 520,793
U.S. Treasury Bonds
10.75%, 8/15/2005.................... 500,000 632,734

DREYFUS LIFETIME PORTFOLIOS, INC.,
Growth and Income Portfolio (continued)
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996
PRINCIPAL
NOTES AND BONDS (CONTINUED) AMOUNT VALUE
_______ _______
U.S. GOVERNMENT &
AGENCIES (CONTINUED) U.S. Treasury Notes:
5.75%, 10/31/1997.................... $ 800,000 $ 799,375
7.375%, 11/15/1997................... 1,300,000 1,320,719
5.625%, 1/31/1998.................... 1,150,000 1,145,149
7.25%, 2/15/1998..................... 1,000,000 1,016,250
5.875%, 4/30/1998.................... 240,000 239,513
5.875, 8/15/1998..................... 6,800,000 6,772,375
5.125%, 11/30/1998................... 350,000 342,836
8.875%, 2/15/1999.................... 4,200,000 4,444,781
6.875%, 8/31/1999.................... 2,000,000 2,031,250
7.125%, 9/30/1999.................... 500,000 511,406
7.75%, 1/31/2000..................... 650,000 677,117
6.25%, 5/31/2000..................... 2,000,000 1,991,875
8.75%, 8/15/2000..................... 300,000 323,859
8%, 5/15/2001........................ 1,175,000 1,246,969
6.625%, 7/31/2001.................... 1,800,000 1,810,406
7.50%, 11/15/2001.................... 100,000 104,359
6.25%, 2/15/2003..................... 2,500,000 2,460,938
5.75%, 8/15/2003..................... 130,000 124,028
7.875%, 11/15/2004................... 60,000 64,500
7.50%, 2/15/2005..................... 400,000 421,000
6.50%, 5/15/2005..................... 1,400,000 1,384,031
6.875%, 5/15/2006.................... 1,000,000 1,011,563
___________
31,397,826
___________
TOTAL NOTES & BONDS
(cost $41,454,963)................... $ 41,319,244
=============
SHORT-TERM INVESTMENTS-12.7%
U.S. TREASURY BILLS: 5.08%, 10/10/1996...................... $ 78,000 $ 77,906
5.14%, 10/17/1996...................... (b) 2,455,000 2,449,673
5%, 11/07/1996......................... 101,000 100,489
5.01%, 11/14/1996...................... 96,000 95,422
4.99%, 11/21/1996...................... 11,264,000 11,185,603
5.01%, 11/29/1996...................... 337,000 334,277
5.10%, 12/05/1996...................... 299,000 296,315
5.08%, 12/12/1996...................... 1,327,000 1,313,836
___________
TOTAL SHORT-TERM INVESTMENTS
(cost $15,851,547)................... $ 15,853,521
=============

DREYFUS LIFETIME PORTFOLIOS, INC.,
Growth and Income Portfolio (continued)
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996

TOTAL INVESTMENTS (cost $113,098,124)....................................... 92.4% $115,366,650
======= =============
CASH AND RECEIVABLES (NET).................................................. 7.6% $ 9,469,723
======= =============
NET ASSETS.................................................................. 100.0% $124,836,373
======= =============

NOTES TO STATEMENT OF INVESTMENTS:
(a) Non-income producing.
(b) Partially held by the custodian in a segregated account as
collateral for open futures positions.

See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS LIFETIME PORTFOLIOS, INC.,
Growth and Income Portfolio (continued)
STATEMENT OF FINANCIAL FUTURES SEPTEMBER 30, 1996
UNREALIZED
MARKET VALUE APPRECIATION
NUMBER OF COVERED (DEPRECIATION)
FINANCIAL FUTURES PURCHASED: CONTRACTS BY CONTRACTS EXPIRATION AT 9/30/96
_______ __________ _____________ ______________
<S> <C> <C> <C> <C>

CAC 40....................................... 6 $ 499,109 December `96 $ 14,574
Deutsche Akteinindex......................... 5 882,315 December `96 22,860
Financial Times 100.......................... 10 1,552,245 December `96 6,711
Hang Seng.................................... 7 535,942 October `96 21,563
Nikkei 300 .................................. 97 2,681,685 December `96 95,808
Russell 2000................................. 88 15,268,000 December `96 22,020
Standard & Poor's 500........................ 6 2,074,200 December `96 (8,760)
__________
$174,776
============

See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS LIFETIME PORTFOLIOS, INC., Growth Portfolio
STATEMENT OF INVESTMENTS SEPTEMBER 30, 1996
COMMON STOCKS-67.8% SHARES VALUE
_________ _________
<S> <C> <C>
BASIC INDUSTRIES-4.2%. Champion International................. 2,500 $ 114,688
Dow Chemical........................... 1,900 152,475
duPont (E.I.) de Nemours & Co.......... 2,900 255,925
Georgia-Pacific........................ 1,500 118,688
International Paper.................... 6,000 255,000
Morton International................... 4,200 166,950
Olin................................... 1,100 92,400
Owens-Illinois......................... (a) 5,000 87,500
PPG Industries......................... 3,300 179,438
Praxair................................ 2,400 103,200
Sherwin-Williams....................... 1,600 74,200
Union Carbide.......................... 3,000 136,875
Willamette Industries.................. 500 32,750
__________
1,770,089
__________
CAPITAL SPENDING-15.0% 3COM................................... (a) 3,700 222,231
Applied Materials...................... (a) 3,400 93,925
COMPAQ Computer........................ (a) 3,600 230,850
Cabletron Systems...................... (a) 2,000 136,750
Case................................... 4,400 214,500
Caterpillar............................ 4,700 354,263
cisco Systems.......................... (a) 8,000 496,500
Computer Associates International...... 2,600 155,350
General Electric....................... 5,600 509,600
General Motors, Cl. H.................. 1,700 98,175
HBO & Co............................... 2,100 140,175
Harnischfeger Industries............... 3,400 128,350
Harsco................................. 400 25,200
HealthCare COMPARE..................... (a) 2,400 113,700
Illinois Tool Works.................... 2,600 187,525
Intel.................................. 5,400 515,363
LSI Logic.............................. (a) 5,700 132,525
Lockheed Martin........................ 2,800 252,350
McDonnell Douglas...................... 3,100 162,750
Microsoft.............................. (a) 5,300 698,938
Newbridge Networks..................... (a) 4,100 261,375
Oracle................................. (a) 7,700 327,731
Pitney Bowes........................... 2,000 105,250
Raytheon............................... 4,600 255,875
Rockwell International................. 2,700 152,213
Tellabs................................ (a) 1,300 91,812
Xerox.................................. 5,700 305,663
__________
6,368,939
__________

DREYFUS LIFETIME PORTFOLIOS, INC., Growth Portfolio (continued)
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996
COMMON STOCKS (CONTINUED) SHARES VALUE
________ _______
CONSUMER CYCLICAL-9.0% Black & Decker......................... 1,700 $ 70,550
Brunswick.............................. 3,600 86,400
Chrysler............................... 7,200 206,100
Dayton Hudson.......................... 8,500 280,500
Eckerd................................. (a) 5,100 142,800
Federated Department Stores............ (a) 4,500 150,750
Gannett................................ 1,000 70,375
Gap.................................... 10,600 306,075
General Motors......................... 6,900 331,200
Goodyear Tire & Rubber................. 1,100 50,738
King World Productions................. (a) 2,600 95,875
Leggett & Platt........................ 2,500 73,438
Magna International, Cl. A............. 1,300 62,725
McDonald's............................. 4,200 198,975
Mirage Resorts......................... (a) 3,800 97,375
NIKE, Cl. B............................ 2,400 291,600
New York Times, Cl. A.................. 6,100 205,875
OfficeMax.............................. (a) 3,100 43,400
Safeway................................ (a) 9,500 404,938
Sara Lee............................... 4,500 160,875
Sears, Roebuck & Co.................... 3,900 174,525
TJX Companies.......................... 6,800 243,950
V.F. Corp.............................. 1,200 72,150
Waban.................................. (a) 1,100 25,163
__________
3,846,352
__________
CONSUMER STAPLES-8.5% Avon Products.......................... 6,400 317,600
Campbell Soup.......................... 1,500 117,000
Clorox................................. 800 76,700
Coca-Cola.............................. 16,300 829,263
Coca-Cola Enterprises.................. 3,100 140,275
Eastman Kodak.......................... 3,000 235,500
Gillette............................... 4,300 310,138
Hershey Foods.......................... 3,000 150,750
IBP.................................... 8,300 192,975
Johnson & Johnson...................... 12,800 656,000
Philip Morris Cos...................... 4,800 430,800
Ralston-Ralston Purina Group........... 2,600 178,100
__________
3,635,101
__________
ENERGY-6.4% Amoco.................................. 1,500 105,750
British Petroleum, A.D.S............... 2,300 287,500
Chevron................................ 5,900 369,487
Coastal................................ 4,300 177,375
Consolidated Natural Gas............... 2,400 128,700

DREYFUS LIFETIME PORTFOLIOS, INC., Growth Portfolio (continued)
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996
COMMON STOCKS (CONTINUED) SHARES VALUE
________ ________
ENERGY (CONTINUED) Exxon.................................. 5,200 $ 432,900
PanEnergy.............................. 2,400 83,100
Phillips Petroleum..................... 6,300 269,325
Texaco................................. 3,500 322,000
Transocean Offshore.................... 2,300 140,875
USX-Marathon Group..................... 3,800 82,175
Unocal................................. 6,600 237,600
Williams Cos........................... 2,100 107,100
__________
2,743,887
__________
HEALTH CARE-6.4% Abbott Laboratories.................... 5,200 256,100
Amgen.................................. (a) 5,000 315,625
Becton, Dickinson & Co................. 7,300 323,025
Bristol-Myers Squibb................... 2,600 250,575
Columbia/HCA Healthcare................ 3,500 199,062
Guilford Pharmaceuticals............... 2,500 68,750
Medtronic.............................. 3,000 192,375
Merck & Co............................. 8,100 570,037
Pfizer................................. 3,800 300,675
Schering-Plough........................ 4,300 264,450
__________
2,740,674
__________
INTEREST SENSITIVE-9.8% Allstate............................... 5,800 285,650
American National Insurance............ 1,000 68,000
AmSouth Bancorp........................ 1,700 75,650
BankAmerica............................ 6,600 542,025
Bear Stearns Cos....................... 7,300 169,725
CIGNA.................................. 2,100 251,737
Chase Manhattan........................ 2,400 192,300
Citicorp............................... 3,000 271,875
Comerica............................... 6,800 350,200
Conseco................................ 3,000 147,750
Dean Witter, Discover & Co............. 1,700 93,500
EXEL................................... 6,800 236,300
First Chicago NBD...................... 5,000 226,250
Green Tree Financial................... 4,500 176,625
Loews.................................. 1,600 123,800
Morgan (J.P.) & Co..................... 1,700 151,087
NationsBank............................ 2,100 182,437
Oxford Health Plans.................... (a) 1,500 74,625
Republic New York...................... 1,200 82,950
Standard Federal Bancorporation........ 1,300 59,475
Student Loan Marketing Association..... 3,000 223,875
Travelers Group........................ 3,900 191,587
__________
4,177,423
__________

PRINCIPAL
SHORT-TERM INVESTMENTS-47.1% AMOUNT
___________
U.S. TREASURY BILLS: 5.09%, 10/3/1996....................... $ 5,271,000 $ 5,269,577
5.09%, 10/10/1996...................... 375,000 374,550
5.14%, 10/17/1996...................... 393,000 392,147
5.05%, 11/7/1996....................... 3,217,000 3,200,722
5.04%, 11/14/1996...................... 2,669,000 2,652,932
5%, 11/21/1996......................... (b) 4,603,000 4,570,963
5.05%, 11/29/1996...................... 391,000 387,841
5.10%, 12/5/1996....................... 310,000 307,216
5.08%, 12/12/1996...................... 2,934,000 2,904,895
__________
TOTAL SHORT-TERM INVESTMENTS
(cost $20,058,693)................... $20,060,843
=============

DREYFUS LIFETIME PORTFOLIOS, INC., Growth Portfolio (continued)
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30,1996

TOTAL INVESTMENTS (cost $45,005,035)........................................ 114.9% $48,957,792
======= =============
LIABILITIES, LESS CASH AND RECEIVABLES...................................... (14.9%) $ (6,357,112)
======= =============
NET ASSETS.................................................................. 100.0% $42,600,680
======= =============

NOTES TO STATEMENT OF INVESTMENTS:
(a) Non-income producing.
(b) Partially held by the custodian in a segregated account as
collateral for open futures positions.

See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS LIFETIME PORTFOLIOS, INC., Growth Portfolio (continued)
STATEMENT OF FINANCIAL FUTURES SEPTEMBER 30, 1996
MARKET VALUE UNREALIZED
NUMBER OF COVERED APPRECIATION
FINANCIAL FUTURES PURCHASED: CONTRACTS BY CONTRACTS EXPIRATION AT 9/30/96
________ ____________ ___________ ______________
<S> <C> <C> <C> <C>
CAC 40...................................... 4 $ 332,714 December `96 $ 12,732
Deutsche Akteinindex........................ 3 530,256 December `96 17,219
Financial Times 100......................... 7 1,084,662 December `96 6,888
Hang Seng................................... 5 382,823 October `96 16,184
Nikkei 300.................................. 68 1,885,981 December `96 104,817
Russell 2000................................ 45 7,807,500 December `96 37,250
Standard & Poor's 500....................... 3 1,037,100 December `96 3,570
___________
$198,660
============

See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS LIFETIME PORTFOLIOS, INC.
STATEMENT OF ASSETS AND LIABILITIES SEPTEMBER 30, 1996
INCOME GROWTH AND INCOME GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO
_________ ____________ __________
<S> <C> <C> <C>
ASSETS:
Investments in securities, at value
[cost-Note 5(b)]-see statement........................ $21,499,893 $115,366,650 $48,957,792
Cash.................................................... 91,017 156,308 120,146
Dividends and interest receivable....................... 174,780 650,494 36,231
Receivable for investment securities sold............... - 2,816,715 1,563,069
Receivable for shares of Common Stock subscribed........ - 40,759,027 -
Receivable for futures variation margin................. - 107,711 142,090
Prepaid expenses........................................ 41,669 55,243 29,817
Due from The Dreyfus Corporation and affiliates......... 25,890 - 25,687
_________ _________ __________
21,833,249 159,912,148 50,874,832
_________ _________ __________
LIABILITIES:
Due to The Dreyfus Corporation and affiliates........... - 20,179 -
Due to Distributor...................................... 1,767 32 2,898
Payable for investment securities purchased............. 207,600 34,701,831 8,232,453
Payable for Common Stock redeemed....................... - 297,994 -
Accrued expenses and other liabilities.................. 33,741 55,739 38,801
_________ _________ __________
243,108 35,075,775 8,274,152
_________ _________ __________
NET ASSETS ...................................... $21,590,141 $124,836,373 $42,600,680
=========== ============= ============
REPRESENTED BY:
Paid-in capital......................................... $20,380,624 $118,499,756 $35,042,057
Accumulated undistributed investment income-net......... 743,394 1,548,756 509,145
Accumulated undistributed net realized gain on investments 588,386 2,344,559 2,898,061
Accumulated net unrealized appreciation (depreciation) on
investments and foreign currency transactions [including
$16,660, $174,776 and $198,660 net unrealized appreciation
on financial futures for the Income Portfolio, Growth and Income
Portfolio and Growth Portfolio, respectively]-Note 5(b) (122,263) 2,443,302 4,151,417
_________ _________ __________
NET ASSETS at value......................................... $21,590,141 $124,836,373 $42,600,680
=========== ============= ============
NET ASSET VALUE per share:
Retail Shares
50 million shares of $.001 par value shares authorized
($12,889,510 / 960,534 shares of Common Stock outstanding) $13.42
=======
50 million shares of $.001 par value shares authorized
($124,676,178 / 8,126,889 shares of Common Stock outstanding) $15.34
=======
50 million shares of $.001 par value shares authorized
($28,143,078 / 1,696,822 shares of Common Stock outstanding) $16.59
=======
Institutional Shares
50 million shares of $.001 par value shares authorized
($8,700,631 / 649,860 shares of Common Stock outstanding) $13.39
=======
50 million shares of $.001 par value shares authorized
($160,195 / 10,384 shares of Common Stock outstanding).. $15.43
=======
50 million shares of $.001 par value shares authorized
($14,457,602 / 872,223 shares of Common Stock outstanding) $16.58
=======
See notes to financial statements.

DREYFUS LIFETIME PORTFOLIOS, INC.
STATEMENT OF OPERATIONS YEAR ENDED SEPTEMBER 30, 1996
INCOME GROWTH AND INCOME GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO
_________ ____________ __________
INVESTMENT INCOME:
INCOME:
Interest.............................................. $1,132,348 $1,655,460 $529,788
Cash dividends (net of $1,534 and $1,796 foreign taxes
withheld at source for the Growth and Income Portfolio
and the Growth Portfolio, respectively)........... - 455,834 393,908
_________ _________ __________
TOTAL INCOME.................................... 1,132,348 2,111,294 923,696
_________ _________ __________
EXPENSES-Note 2(d):
Management fee-Note 4(a).............................. $ 106,953 $ 363,726 $ 222,888
Legal fees............................................ 58,908 32,282 68,797
Shareholder servicing costs-Note 4(b)................. 27,422 27,024 42,735
Auditing fees......................................... 13,917 15,417 18,217
Registration fees..................................... 11,196 74,074 20,393
Director's fees and expenses-Note 4(c)................ 4,475 8,590 8,269
Prospectus and shareholders' reports.................. 4,236 6,340 8,526
Custodian fees-Note 4(b).............................. 3,140 22,679 21,270
Miscellaneous......................................... 7,639 18,054 2,379
_________ _________ __________
TOTAL EXPENSES.................................. 237,886 568,186 413,474
Less-expense reimbursement from Manager due to
undertakings-Note 4(a)............................ 109,255 186,888 156,678
_________ _________ __________
NET EXPENSES.................................... 128,631 381,298 256,796
_________ _________ __________
INVESTMENT INCOME-NET........................... 1,003,717 1,729,996 666,900
_________ _________ __________
REALIZED AND UNREALIZED GAIN ON INVESTMENTS-Note 5:
Net realized gain on investments........................ $ 86,502 $2,511,715 $2,270,496
Net realized gain (loss) on financial futures;
Long Transactions..................................... 665,740 (117,672) 684,758
_________ _________ __________
NET REALIZED GAIN..................................... 752,242 2,394,043 2,955,254
_________ _________ __________
Net unrealized appreciation (depreciation) on investments and
foreign currency transactions [including ($143,760), $140,116
and $176,685 net unrealized appreciation (depreciation) on
financial futures for the Income Portfolio, the Growth and
Income Portfolio and the Growth Portfolio, respectively].... (514,850) 1,137,447 1,810,027
_________ _________ __________
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS.............................. 237,392 3,531,490 4,765,281
_________ _________ __________
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS......................................... $1,241,109 $5,261,486 $5,432,181
========== ========== ===========

See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS LIFETIME PORTFOLIOS, INC., Income Portfolio
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SEPTEMBER 30,
_____________________________
1995(1) 1996(2)
___________ ___________
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 474,272 $ 1,003,717
Net realized gain on investments........................................ 353,820 752,242
Net unrealized appreciation (depreciation) on investments for the year.. 392,587 (514,850)
______________ ____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............. 1,220,679 1,241,109
______________ ____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net:
Retail shares......................................................... - (373,549)
Institutional shares.................................................. - (360,792)
Net realized gain on investments:
Retail shares......................................................... - (259,074)
Institutional shares.................................................. - (258,568)
______________ ____________
TOTAL DIVIDENDS................................................... - (1,251,983)
______________ ____________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold:
Retail shares......................................................... 7,508,845 10,745,770
Proceeds from acquisition of Dreyfus Asset Allocation Fund, Inc.,
Dreyfus Income Portfolio-Note 1................................... - 2,175,198
Institutional shares.................................................. 7,504,669 8,402,990
Dividends reinvested:
Retail shares......................................................... - 632,623
Institutional shares.................................................. - 619,360
Cost of shares redeemed:
Retail shares......................................................... - (8,836,511)
Institutional shares.................................................. (4,658) (8,400,950)
______________ ____________
INCREASE IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS............ 15,008,856 5,338,480
______________ ____________
TOTAL INCREASE IN NET ASSETS.................................... 16,229,535 5,327,606
NET ASSETS:
Beginning of year....................................................... 33,000 16,262,535
______________ ____________
End of year (including undistributed investment income-net:
$474,272 in 1995 and $744,137 in 1996)................................ $16,262,535 $21,590,141
============== =============

</TABLE>
<TABLE>
<CAPTION>
DREYFUS LIFETIME PORTFOLIOS, INC., Income Portfolio
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
SHARES
_______________________________________________________________________
RETAIL CLASS INSTITUTIONAL CLASS
__________________________________ ______________________________

YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30,
__________________________________ ______________________________

1995(1) 1996(2) 1995(1) 1996(2)
_____________ ____________ ____________ ____________
<S> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Shares sold............................ 600,655 784,543 600,353 607,155
Shares issued in connection with acquisition of
Dreyfus Asset Allocation Fund, Inc., Dreyfus
Income Portfolio-Note 1.................... - 163,672 - -
Shares issued for dividends reinvested. - 49,308 - 48,312
Shares redeemed........................ - (638,964) (353) (606,927)
_____________ ____________ ____________ ____________
NET INCREASE IN SHARES OUTSTANDING 600,655 358,559 600,000 48,540
============= ============= =========== ==============
(1) From March 31, 1995 (commencement of operations) to September 30, 1995.
(2) Effective July 15, 1996, Class R shares were redesignated as
Retail shares and Investor Class shares were redesignated
as Institutional shares.

See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS LIFETIME PORTFOLIOS, INC., Growth and Income Portfolio
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
YEAR ENDED SEPTEMBER 30,
_______________________________
1995(1) 1996(2)
____________ ____________
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 332,653 $ 1,729,996
Net realized gain on investments........................................ 545,329 2,394,043
Net unrealized appreciation on investments for the year................. 1,305,855 1,137,447
_____________ ____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............. 2,183,837 5,261,486
_____________ ____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net:
Retail shares......................................................... - (272,975)
Institutional shares.................................................. - (240,918)
Net realized gain on investments:
Retail shares......................................................... - (308,722)
Institutional shares.................................................. - (286,091)
_____________ ____________
TOTAL DIVIDENDS................................................... - (1,108,706)
_____________ ____________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold:
Retail shares......................................................... 8,144,735 157,954,660
Institutional shares.................................................. 7,509,353 9,277,898
Dividends reinvested:
Retail shares......................................................... - 581,166
Institutional shares.................................................. - 527,010
Cost of shares redeemed:
Retail shares......................................................... (20,620) (46,831,889)
Institutional shares.................................................. (915) (18,675,642)
_____________ ____________
INCREASE IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS............ 15,632,553 102,833,203
_____________ ____________
TOTAL INCREASE IN NET ASSETS.................................... 17,816,390 106,985,983
NET ASSETS:
Beginning of year....................................................... 34,000 17,850,390
_____________ ____________
End of year (including undistributed investment income-net:
$332,653 in 1995 and $1,548,756 in 1996).............................. $ 17,850,390 $124,836,373
============== =============
</TABLE>
<TABLE>
<CAPTION>
SHARES
______________________________________________________________________
RETAIL CLASS INSTITUTIONAL CLASS
_____________________________________ __________________________
YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30,
_____________________________________ __________________________
1995(1) 1996(2) 1995(1) 1996(2)
___________ ___________ ___________ ___________
<S> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Shares sold............................ 646,375 10,597,594 600,654 629,738
Shares issued for dividends reinvested. - 42,205 - 38,272
Shares redeemed........................ (1,438) (3,159,207) (66) (1,259,574)
___________ ___________ ___________ ___________
NET INCREASE (DECREASE) IN
SHARES OUTSTANDING............. 644,937 7,480,592 600,588 (591,564)
============ ============ ========== ============

(1) From March 31, 1995 (commencement of operations) to September 30, 1995.
(2) Effective July 15, 1996, Class R shares were redesignated
as Retail shares and Investor Class shares were redesignated
as Institutional shares.
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS LIFETIME PORTFOLIOS, INC., Growth Portfolio
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
YEAR ENDED SEPTEMBER 30,
_______________________________
1995(1) 1996(2)
_____________ __________
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 318,027 $ 666,900
Net realized gain on investments........................................ 1,074,382 2,955,254
Net unrealized appreciation on investments for the year................. 2,341,390 1,810,027
_____________ __________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............. 3,733,799 5,432,181
_____________ __________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net:
Retail shares......................................................... - (249,191)
Institutional shares.................................................. - (226,359)
Net realized gain on investments:
Retail shares......................................................... - (562,690)
Institutional shares.................................................. - (565,898)
_____________ __________
TOTAL DIVIDENDS................................................... __ (1,604,138)
_____________ __________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold:
Retail shares......................................................... 10,007,843 23,280,910
Proceeds from acquisition of Dreyfus Asset Allocation Fund, Inc.,
Dreyfus Growth Portfolio-Note 1................................... - 2,803,938
Institutional shares.................................................. 10,067,618 12,713,945
Dividends reinvested:
Retail shares......................................................... - 811,742
Institutional shares.................................................. - 792,257
Cost of shares redeemed:
Retail shares......................................................... - (12,912,596)
Institutional shares.................................................. (5,256) (12,554,563)
_____________ __________
INCREASE IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS............ 20,070,205 14,935,633
_____________ __________
TOTAL INCREASE IN NET ASSETS.................................... 23,804,004 18,763,676
NET ASSETS:
Beginning of year....................................................... 33,000 23,837,004
_____________ __________
End of year (including undistributed investment income-net:
$318,027 in 1995 and $509,145 in 1996)................................ $ 23,837,004 $ 42,600,680
============== ============

</TABLE>
<TABLE>
<CAPTION>
DREYFUS LIFETIME PORTFOLIOS, INC., Growth Portfolio
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
SHARES
______________________________________________________________________
RETAIL CLASS INSTITUTIONAL CLASS
_____________________________________ __________________________
YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30,
_____________________________________ __________________________
1995(1) 1996(2) 1995(1) 1996(2)
___________ ___________ ___________ ___________
<S> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Shares sold............................ 800,540 1,500,411 804,636 828,585
Shares issued in connection with acquisition of
Dreyfus Asset Allocation Fund, Inc., Dreyfus
Growth Portfolio-Note 1.................... - 175,795 - -
Shares issued for dividends reinvested. - 57,044 - 55,675
Shares redeemed........................ - (838,288) (370) (817,623)
___________ ___________ ___________ ___________
NET INCREASE IN SHARES OUTSTANDING 800,540 894,962 804,266 66,637
========== ============ =========== =============
(1) From March 31, 1995 (commencement of operations) to September 30, 1995.
(2) Effective July 15, 1996, Class R shares were redesignated as Retail
shares and Investor Class shares were redesignated
as Institutional shares.

See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS LIFETIME PORTFOLIOS, INC., Income Portfolio
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each year indicated. This information
has been derived from the Portfolios' financial statements.

RETAIL SHARES INSTITUTIONAL SHARES
_________________________ ________________________
YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30,
_________________________ _______________________
PER SHARE DATA: 1995(1) 1996(2) 1995(1) 1996(2)
_______ _______ _______ _______
<S> <C> <C> <C> <C>
Net asset value, beginning of year...... $12.50 $13.52 $12.50 $13.51
_______ _______ _______ _______
INVESTMENT OPERATIONS:
Investment income-net................... .40 .64 .39 .73
Net realized and unrealized gain
on investments........................ .62 .31 .62 .18
_______ _______ _______ _______
TOTAL FROM INVESTMENT OPERATIONS 1.02 .95 1.01 .91
_______ _______ _______ _______
DISTRIBUTIONS:
Dividends from investment income-net.... - (.62) - (.60)
Dividends from net realized gain
on investments........................ - (.43) - (.43)
_______ _______ _______ _______
TOTAL DISTRIBUTIONS............... - (1.05) - (1.03)
_______ _______ _______ _______
Net asset value, end of year............ $13.52 $13.42 $13.51 $13.39
======= ======== ======= ========
TOTAL INVESTMENT RETURN..................... 8.24%(3) 7.30% 8.08%(3) 7.07%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets. .30%(3) .60% .43%(3) .85%
Ratio of net investment income to average
net assets............................ 3.08%(3) 5.75% 2.95%(3) 5.50%
Decrease reflected in above expense ratios
due to undertaking by the Manager..... .26%(3) .61% .26%(3) .61%
Portfolio Turnover Rate................. 5.66%(3) 32.95% 5.66%(3) 32.95%
Average commission rate paid(4)......... - - - -
Net Assets, end of year (000's Omitted). $8,141 $12,889 $8,122 $8,701
(1) From March 31, 1995 (commencement of operations) to September 30, 1995.
(2) Effective July 15, 1996, Class R shares were redesignated
as Retail shares and Investor Class shares were redesignated
as Institutional shares.
(3) Not annualized.
(4) For fiscal years beginning October 1, 1995, the Portfolio is
required to disclose its average commission rate paid per
share for purchases and sales of investment securities.

See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS LIFETIME PORTFOLIOS, INC., Growth and Income Portfolio
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each year indicated. This information
has been derived from the Portfolios' financial statements.
RETAIL SHARES INSTITUTIONAL SHARES
_________________________ ________________________
YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30,
_________________________ _______________________
PER SHARE DATA: 1995(1) 1996(2) 1995(1) 1996(2)
_______ _______ _______ _______
<S> <C> <C> <C> <C>
Net asset value, beginning of year...... $12.50 $14.31 $12.50 $14.29
_______ _______ _______ _______
INVESTMENT OPERATIONS:
Investment income-net................... .27 .33 .27 .90(3)
Net realized and unrealized gain
on investments........................ 1.54 1.60 1.52 1.12(3)
_______ _______ _______ _______
TOTAL FROM INVESTMENT OPERATIONS.. 1.81 1.93 1.79 2.02(3)
_______ _______ _______ _______
DISTRIBUTIONS:
Dividends from investment income-net.... - (.42) - (.40)
Dividends from net realized gain
on investments........................ - (.48) - (.48)
_______ _______ _______ _______
TOTAL DISTRIBUTIONS............... - (.90) - (.88)
_______ _______ _______ _______
Net asset value, end of year............ $14.31 $15.34 $14.29 $15.43
======= ======== ======= =======
TOTAL INVESTMENT RETURN..................... 14.48%(4) 14.17% 14.32%(4) 14.84%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets. .38%(4) .75% .51%(4) 1.00%
Ratio of net investment income to average
net assets............................ 2.10%(4) 3.60% 1.98%(4) 3.35%
Decrease reflected in above expense ratios
due to undertaking by the Manager..... .33%(4) .39% .33%(4) .39%
Portfolio Turnover Rate................. 33.55%(4) 122.52% 33.55%(4) 122.52%
Average commission rate paid(5)......... - $.0480 - $.0480
Net Assets, end of year (000's Omitted). $9,248 $124,677 $8,602 $160
(1) From March 31, 1995 (commencement of operations) to September 30, 1995.
(2) Effective July 15, 1996, Class R shares were redesignated
as Retail shares and Investor Class shares were redesignated
as Institutional shares.
(3) Based on average shares outstanding.
(4) Not annualized.
(5) For fiscal years beginning October 1, 1995, the Portfolio
is required to disclose its average commission rate paid per
share for purchases and sales of investment securities.
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS LIFETIME PORTFOLIOS, INC., Growth Portfolio
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each year indicated. This information
has been derived from the Portfolios' financial statements.
RETAIL SHARES INSTITUTIONAL SHARES
_________________________ ________________________
YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30,
_________________________ _______________________
PER SHARE DATA: 1995(1) 1996(2) 1995(1) 1996(2)
_______ _______ _______ _______
<S> <C> <C> <C> <C>
Net asset value, beginning of year...... $12.50 $14.84 $12.50 $14.82
_______ _______ _______ _______
INVESTMENT OPERATIONS:
Investment income-net................... .21 .28 .19 .32
Net realized and unrealized gain
on investments........................ 2.13 2.48 2.13 2.42
_______ _______ _______ _______
TOTAL FROM INVESTMENT OPERATIONS.. 2.34 2.76 2.32 2.74
_______ _______ _______ _______
DISTRIBUTIONS:
Dividends from investment income-net.... - (.31) - (.28)
Dividends from net realized gain
on investments........................ - (.70) - (.70)
_______ _______ _______ _______
TOTAL DISTRIBUTIONS............... - (1.01) - (.98)
_______ _______ _______ _______
Net asset value, end of year............ $14.84 $16.59 $14.82 $16.58
======= ======== ======= ========
TOTAL INVESTMENT RETURN..................... 18.72%(3) 19.73% 18.56%(3) 19.58%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets. .38%(3) .75% .51%(3) 1.00%
Ratio of net investment income to average
net assets............................ 1.51%(3) 2.38% 1.39%(3) 2.08%
Decrease reflected in above expense ratios
due to undertaking by the Manager..... .26%(3) .53% .26%(3) .53%
Portfolio Turnover Rate................. 52.86%(3) 77.83% 52.86%(3) 77.83%
Average commission rate paid(4)......... - $.0519 - $.0519
Net Assets, end of year (000's Omitted). $11,898 $28,143 $11,939 $14,458
(1) From March 31, 1995 (commencement of operations) to September 30, 1995.
(2) Effective July 15, 1996, Class R shares were redesignated
as Retail shares and Investor Class shares were redesignated
as Institutional shares.
(3) Not annualized.
(4) For fiscal years beginning October 1, 1995, the Portfolio
is required to disclose its average commission rate paid per
share for purchases and sales of investment securities.

See notes to financial statements.
</TABLE>
DREYFUS LIFETIME PORTFOLIOS, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1-GENERAL:
Dreyfus LifeTime Portfolios, Inc. (the "Fund") is registered under the
Investment Company Act of 1940, as amended, ("Act") as a diversified open-end
management investment company and operates as a series company currently
offering three Portfolios: the Income Portfolio, the primary investment
objective of which is to maximize current income and the secondary investment
objective of which is capital appreciation, the Growth and Income Portfolio,
the investment objective of which is to maximize total return, consisting of
capital appreciation and current income and the Growth Portfolio, the
investment objective of which is capital appreciation. The Fund accounts
separately for the assets, liabilities and operations of each portfolio. The
Dreyfus Corporation ("Manager") serves as each Portfolio's investment
adviser. The Manager is a direct subsidiary of Mellon Bank, N.A. ("Mellon").
Mellon Equity Associates ("Mellon Equity") serves as each Portfolio's
sub-investment adviser.
As of September 30, 1996, Allomon Corporation, an indirect subsidiary of
Mellon Bank Corporation, held the following shares:
<TABLE>
<CAPTION>
<S> <C> <S> <C>
Income Portfolio............... 1,297,310 Growth Portfolio.................... 1,711,876

As of September 30, 1996, MBIC Investment Corp., an indirect subsidiary
of Mellon Bank Corporation, held the following shares;

Income Portfolio............... 101,376
</TABLE>
On February 2, 1996, the Board of Directors of the Fund approved an
Agreement and Plan of Reorganization providing for the
transfer of all or substantially all of the assets and liabilities of two
portfolios of Dreyfus Asset Allocation Fund, Inc., Dreyfus Income Portfolio
and Dreyfus Growth Portfolio to the Income Portfolio and Growth Portfolio of
the Fund, respectively, in a tax free exchange for shares of Common Stock of
the respective portfolios of the Fund at net asset value and the assumption
of stated liabilities (the "Exchange"). The Exchange was approved by Dreyfus
Asset Allocation Fund, Inc. shareholders on August 19, 1996, and became
effective after the close of business on August 21, 1996, at which time the
Fund issued 163,672 shares valued at $13.29 per share of the Income
Portfolio's Retail Class shares and 175,795 shares valued at $15.95 per share
of the Growth Portfolio's Retail shares to the shareholders of the Dreyfus
Income Portfolio and the Dreyfus Growth Portfolio, respectively, of Dreyfus
Asset Allocation Fund, Inc., in exchange for 167,323 shares of the Dreyfus
Asset Allocation Fund, Inc., Dreyfus Income Portfolio valued at $13.00 per
share and 203,775 shares of the Dreyfus Asset Allocation Fund, Inc., Dreyfus
Growth Portfolio valued at $13.76 per share representing net assets of
$2,175,198 and $2,803,938, respectively. Included in the net assets of the
Dreyfus Asset Allocation Fund, Inc., Dreyfus Income Portfolio is $64 of
unrealized appreciation. The combined net assets immediately after the
Exchange was $20,976,239 for the Income Portfolio of the Fund. Included in
the net assets of Dreyfus Asset Allocation Fund, Inc., Dreyfus Growth
Portfolio is $69,702 of unrealized appreciation. The combined net assets
immediately after the exchange was $39,343,700 for Dreyfus Growth Portfolio.
Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
distributor of the Fund's shares. Effective July 15, 1996, each Portfolio's
Class R shares were redesignated as Retail shares and each Portfolio's
Investor shares were redesignated as Institutional shares. Retail shares are
offered to any investor and Institutional shares are offered only to clients
of banks, securities brokers or dealers and other financial institutions
DREYFUS LIFETIME PORTFOLIOS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(collectively, Service Agents) that have entered into selling agreements with
the Fund's distributor. Other differences between the two classes include the
services offered to and the expenses borne by each class.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management
estimates and assumptions. Actual results could differ from those estimates.
NOTE 2-SIGNIFICANT ACCOUNTING POLICIES:
(A) PORTFOLIO VALUATION: Each Portfolio's investments in securities
(including options and financial futures) are valued at the last sales price
on the securities exchange on which such securities are primarily traded or
at the last sales price on the national securities market. Securities not
listed on an exchange or the national securities market, or securities for
which there were no transactions, are valued at the average of the most
recent bid and asked prices. Bid price is used when no asked price is
available. Securities for which there are no such valuations are valued at
fair value as determined in good faith under the direction of the Board of
Directors. Investments denominated in foreign currencies are translated to
U.S. dollars at the prevailing rates of exchange.
Most debt securities (excluding short-term investments) are valued each
business day by an independent pricing service ("Service") approved by the
Board of Directors. Debt securities for which quoted bid prices are readily
available and are representative of the bid side of the market in the
judgment of the Service are valued at the mean between the quoted bid prices
(as obtained by the Service from dealers in such securities) and asked prices
(as calculated by the Service based upon its evaluation of the market for
such securities). Other debt securities are carried at fair value as
determined by the Service, based on methods which include consideration of:
yields or prices of securities of comparable quality, coupon, maturity and
type; indications as to values from dealers; and general market conditions.
(B) FOREIGN CURRENCY TRANSACTIONS: The Fund does not isolate that portion
of the results of the operations resulting from changes in foreign exchange
rates on investments from the fluctuations arising from changes in the market
prices of securities held. Such fluctuations are included with the net
realized and unrealized gain or loss from investments.
Net realized foreign exchange gains or losses arise from sales and
maturities of short-term securities, sales of foreign currencies, currency
gains or losses realized on securities transactions, the difference between
the amount of dividends, interest and foreign withholding taxes recorded on
the Fund's books, and the U.S. dollar equivalent of the amounts actually
received or paid. Net unrealized foreign exchange gains and losses arise from
changes in the value of assets and liabilities other than investments in
securities, resulting from changes in exchange rates. Such gains and losses
are included with net realized and unrealized gain or loss on investments.
(C) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Dividend
income is recognized on the ex-dividend date and interest income, including,
where applicable, amortization of discount on investments, is recognized on
the accrual basis.
(D) EXPENSES: Expenses directly attributable to each Portfolio are
charged to that Portfolio's operations; expenses which are applicable to all
portfolios are allocated among them on a pro rata basis.

DREYFUS LIFETIME PORTFOLIOS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(E) DIVIDENDS TO SHAREHOLDERS: Dividends payable to shareholders are
recorded by each Portfolio on the ex-dividend date.
Dividends from investment income-net and dividends from net realized capital
gain, with respect to each Portfolio, are normally declared and paid
annually, but each Portfolio may make distributions on a more frequent basis
to comply with the distribution requirements of the Internal Revenue Code. To
the extent that a net realized capital gain of a Portfolio can be offset by a
capital loss carryover, if any, of that Portfolio, such gain will not be
distributed.
(F) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, if such qualification is in the
best interests of its shareholders, by complying with the applicable
provisions of the Internal Revenue Code, and to make distributions of taxable
income sufficient to relieve it from substantially all Federal income and
excise taxes. For Federal income tax purposes, each Portfolio is treated as a
single entity for the purpose of determining such qualification.
NOTE 3-BANK LINE OF CREDIT:
The Fund participates with other Dreyfus-managed Funds in a $100 million
unsecured line of credit primarily to be utilized for temporary or emergency
purposes, including the financing of redemptions. Interest is charged to the
Fund at rates which are related to the Federal Funds rate in effect at the
time of borrowings. For the year ended September 30, 1996, each Portfolio did
not borrow under the line of credit.
NOTE 4-MANAGEMENT FEE, SUB-INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH
AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed on the value of each Portfolio's average daily
net assets and is payable monthly at the following annual rates: .60 of 1% of
the Income Portfolio and .75 of 1% of the Growth and Income Portfolio and the
Growth Portfolio. The Agreement provides that if in any full fiscal year the
aggregate expenses of any Portfolio, exclusive of taxes, brokerage, interest
on borrowings (which, in the view of Stroock & Stroock & Lavan, counsel to
the Fund, also contemplates dividends accrued on securities sold short) and
extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Fund, that Portfolio may deduct from payments to be
made to the Manager, or the Manager will bear the amount of such excess to
the extent required by state law. The most stringent state expense limitation
applicable to each Portfolio presently requires reimbursement of expenses in
any full fiscal year that such expenses (exclusive of certain expenses as
described above) exceed 21\2% of the first $30 million, 2% of the next $70
million and 11\2% of the excess over $100 million of the value of that
Portfolio's average net assets in accordance with California "blue sky"
regulations. The Manager has undertaken with respect to the Income Portfolio
from October 1, 1995 through March 31, 1997 to reduce to the management fee
paid by, or reimburse such excess expenses of the Portfolio, to the extent
that the Portfolio's aggregate annual expenses (exclusive of Shareholder
Services Plan and certain expenses as described above) exceed an annual rate
of .60 of 1% of the value of the Portfolio's average daily net assets. With
respect to the Growth and Income Portfolio and the Growth Portfolio, the
Manager has undertaken from October 1, 1995 through March 31, 1997 to reduce
the management fee paid by, or reimburse such excess expenses of the
Portfolio, to the extent that the Portfolio's aggregate annual expenses
(exclusive of Shareholder Services Plan and certain expenses as described
above) exceed an annual rate of .75 of 1% of the value of the Portfolio's
average daily net assets.

DREYFUS LIFETIME PORTFOLIOS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The expense reimbursements, pursuant to the undertakings, amounted to the
following for the year ended September 30, 1996:
<TABLE>
<CAPTION>
<S> <C> <S> <C>
Income Portfolio............... $109,255 Growth Portfolio............... $156,678
Growth and Income Portfolio.... 186,888
</TABLE>
The undertakings may be extended, modified or terminated by the Manager,
provided that the resulting expense reimbursement
would not be less than the amount required pursuant to the Agreement.
Pursuant to a Sub-Investment Advisory Agreement between the Manager and
Mellon Equity, the Manager has agreed to pay Mellon Equity a monthly
sub-advisory fee for each Portfolio, computed at the following annual rates:
<TABLE>
<CAPTION>
ANNUAL FEE AS A PERCENTAGE OF
TOTAL FUND NET ASSETS AVERAGE DAILY NET ASSETS OF EACH PORTFOLIO
_____________ ________________________________________
<S> <C>
0 to $600 million........................................... .35 of 1%
$600 up to $1.2 billion..................................... .25 of 1%
$1.2 up to $1.8 billion..................................... .20 of 1%
In excess of $1.8 billion................................... .15 of 1%

</TABLE>
(B) Effective October 1, 1995, the Fund has adopted a Shareholder Services
Plan. Under the Shareholder Services Plan, the
Fund pays the Distributor, at an annual rate of .25 of 1% of the value of the
average daily net assets of the Portfolio's Institutional shares for the
provision of certain services. The services provided may include personal
services relating to shareholder accounts, such as answering shareholder
inquiries regarding the Fund and providing reports and other information, and
services related to the maintenance of shareholder accounts. The Distributor
may make payments to Service Agents in respect of these services. The
Distributor determines the amounts to be paid to Service Agents.
During the year ended September 30, 1996, the following was charged to
each Portfolio's Institutional Shares pursuant to the Shareholder Services
Plan.
<TABLE>
<CAPTION>
<S> <C> <S> <C>
Income Portfolio............... $21,007 Growth Portfolio................ $33,196
Growth and Income Portfolio.... 16,550
</TABLE>
Effective December 1, 1995, each Portfolio compensates Dreyfus Transfer,
Inc., a wholly-owned subsidiary of the Manager,
under a transfer agency agreement for providing personnel and facilities to
perform transfer agency services for each Portfolio. During the period ended
September 30, 1996, each Portfolio compensated the following:
<TABLE>
<CAPTION>
<S> <C> <S> <C>
Income Portfolio............... $484 Growth Portfolio................ $949
Growth and Income Portfolio.... 819

Effective May 3, 1996, the Fund entered into a custody agreement with
Mellon to provide custodial services for each Portfolio. During the period
ended September 30, 1996, each Portfolio paid the following to Mellon
pursuant to the custody agreement:

Income Portfolio............... $2,209 Growth and Income Portfolio. $1,342
</TABLE>
DREYFUS LIFETIME PORTFOLIOS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(C) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $1,000 and
an attendance fee of $250 per meeting. The Chairman of the Board receives an
additional 25% of such compensation.
NOTE 5-SECURITIES TRANSACTIONS:
(A) The following summarizes the aggregate amount of purchases and sales
of investment securities, excluding short-term securities, during the year
ended September 30, 1996:
<TABLE>
<CAPTION>
PURCHASES SALES
_____________ ______________
<S> <C> <C>
Income Portfolio................................................. $ 7,813,522 $ 3,886,245
Growth and Income Portfolio...................................... 130,304,458 48,238,423
Growth Portfolio................................................. 23,515,861 15,513,324
</TABLE>
The Fund may invest in financial futures contracts in order to gain
exposure to or protect against changes in the market. The
Fund is exposed to market risk as a result of changes in the value of the
underlying financial instruments (see the Statements of Financial Futures).
Investments in financial futures require the Fund to "mark to market" on a
daily basis, which reflects the change in the market value of the contract at
the close of each day's trading. Typically, variation margin payments are
received or made to reflect daily unrealized gains or losses. When the
contracts are closed, the Fund recognizes a realized gain or loss. These
investments require initial margin deposits with a custodian, which consist
of cash or cash equivalents, up to approximately 10% of the contract amount.
The amount of these deposits is determined by the exchange or Board of Trade
on which the contract is traded and is subject to change. Contracts open at
September 30, 1996 and their related unrealized market appreciation
(depreciation) are set forth in the Statements of Financial Futures.
(B) The following summarizes accumulated net unrealized appreciation (depr
eciation) on investments for each Portfolio at September 30, 1996:
<TABLE>
<CAPTION>
GROSS GROSS
APPRECIATION (DEPRECIATION) NET
____________ _______________ ___________
<S> <C> <C> <C>
Income Portfolio............................... $ 72,816 $(195,079) $ (122,263)
Growth and Income Portfolio.................... 3,381,475 (938,173) 2,443,302
Growth Portfolio............................... 4,307,531 (156,114) 4,151,417
</TABLE>
At September 30, 1996, the cost of investments of each Portfolio for
Federal income tax purposes was substantially the same
as the cost for financial reporting purposes. The cost of investments for
each Portfolio for financial reporting purposes as of September 30, 1996 was
as follows:
<TABLE>
<CAPTION>
<S> <C> <S> <C>
Income Portfolio............ $21,638,816 Growth Portfolio............ $45,005,035
Growth and Income Portfolio. 113,098,124
</TABLE>
DREYFUS LIFETIME PORTFOLIOS, INC.
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS LIFETIME PORTFOLIOS, INC.
We have audited the accompanying statement of assets and liabilities,
including the statements of investments and financial
futures, of Dreyfus LifeTime Portfolios, Inc. (comprised of the Income
Portfolio, the Growth and Income Portfolio and the Growth Portfolio) as of
September 30, 1996, and the related statement of operations for the year then
ended, the statements of changes in net assets for each of the two years in
the period then ended, and financial highlights for each of the years
indicated therein. These financial statements and financial highlights are
the responsibility of the Fund's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included verification by
examination of securities held by the custodian as of September 30, 1996 and
confirmation of securities not held by the custodian by correspondence with
others. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of each of the respective portfolios constituting the Dreyfus
LifeTime Portfolios, Inc. at September 30, 1996, the results of their
operations for the year then ended, the changes in their net assets for each
of the two years in the period then ended, and the financial highlights for
each of the indicated years, in conformity with generally accepted accounting
principles.
[Ernst & Young LLP signature logo]
New York, New York
November 8, 1996
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, Dreyfus LifeTime Portfolios, Inc.
(Income Portfolio, Growth and Income Portfolio and Growth Portfolio) hereby
make the following designations of long-term capital gain distributions
regarding the fiscal year ended September 30, 1996:
<TABLE>
<CAPTION>
LONG-TERM
CAPITAL GAIN
DISTRIBUTION PAYABLE
PER SHARE DATE
_____________ _____________
<S> <C> <C>
Income Portfolio........................................................... $.255 12/18/95
Growth and Income Portfolio................................................ $.145 12/18/95
Growth Portfolio........................................................... $.21 12/18/95

</TABLE>

[Dreyfus lion "d" logo]
DREYFUS LIFETIME PORTFOLIOS, INC.
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940

Printed in U.S.A. 552/752/556/756/555/755AR969
[Dreyfus logo]
LifeTime
Portfolios, Inc.
Annual Report
September 30, 1996

COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE
INSTITUTIONAL SHARES AND RETAIL SHARES OF DREYFUS LIFETIME
PORTFOLIOS, INC. - GROWTH PORTFOLIO WITH THE STANDARD & POOR'S
500 COMPOSITE STOCK PRICE INDEX AND A CUSTOMIZED BLENDED INDEX

EXHIBIT A:

DREYFUS DREYFUS STANDARD
LIFETIME LIFETIME & POOR'S
PERIOD PORTFOLIOS- PORTFOLIOS- 500
GROWTH GROWTH COMPOSITE
PORTFOLIO PORTFOLIO STOCK CUSTOMIZED
(INSTITUTIONAL (RETAIL PRICE BLENDED
SHARES) SHARES) INDEX * INDEX **

3/31/95 10,000 10,000 10,000 10,000
6/30/95 10,864 10,872 10,953 10,751
9/30/95 11,856 11,872 11,823 11,545
12/31/95 12,467 12,492 12,534 12,132
3/31/96 13,228 13,254 13,207 12,647
6/30/96 13,784 13,828 13,799 13,128
9/30/96 14,177 14,214 14,226 13,420

*Source: Lipper Analytical Services, Inc.
**Source: Lipper Analytical Services, Inc., Lehman Brothers, Morgan
Stanley & Co. Incorporated and J.P. Morgan & Co. Incorporated

COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN THE INSTITUTIONAL SHARES AND RETAIL SHARES OF
DREYFUS LIFETIME PORTFOLIOS, INC. - GROWTH AND
INCOME PORTFOLIO WITH THE STANDARD & POOR'S
500 COMPOSITE STOCK PRICE INDEX AND A CUSTOMIZED
BLENDED INDEX

EXHIBIT A:
DREYFUS DREYFUS
LIFETIME LIFETIME STANDARD
PORTFOLIOS- PORTFOLIOS- & POOR'S
GROWTH AND GROWTH AND 500
INCOME INCOME COMPOSITE
PORTFOLIO PORTFOLIO STOCK CUSTOMIZED
(INSTITUTIONAL (RETAIL PRICE BLENDED
PERIOD SHARES) SHARES) INDEX * INDEX **

3/31/95 10,000 10,000 10,000 10,000
6/30/95 10,728 10,736 10,953 10,678
9/30/95 11,432 11,448 11,823 11,241
12/31/95 11,937 11,954 12,534 11,749
3/31/96 12,371 12,397 13,207 12,043
6/30/96 12,822 12,763 13,799 12,382
9/30/96 13,128 13,070 14,226 12,655

*Source: Lipper Analytical Services, Inc.
**Source: Lipper Analytical Services, Inc., Lehman Brothers, Morgan Stanley
& Co. Incorporated and J.P. Morgan & Co. Incorporated

COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE
INSTITUTIONAL SHARES AND RETAIL SHARES OF DREYFUS
LIFETIME PORTFOLIOS, INC.- INCOME PORTFOLIO WITH THE LEHMAN
BROTHERS INTERMEDIATE GOVERNMENT / CORPORATE
BOND INDEX AND A CUSTOMIZED BLENDED INDEX

EXHIBIT A:

DREYFUS DREYFUS LEHMAN
LIFETIME LIFETIME BROTHERS
PERIOD PORTFOLIOS- PORTFOLIOS- INTERMEDIATE
INCOME INCOME GOVERNMENT /
PORTFOLIO PORTFOLIO CORPORATE CUSTOMIZED
(INSTITUTIONAL (RETAIL BOND BLENDED
SHARES) SHARES) INDEX * INDEX **

3/31/95 10,000 10,000 10,000 10,000
6/30/95 10,512 10,520 10,499 10,565
9/30/95 10,808 10,824 10,673 10,893
12/31/9 11,184 11,208 11,049 11,320
3/31/96 11,253 11,286 10,956 11,421
6/30/96 11,391 11,424 11,025 11,614
9/30/96 11,573 11,615 11,221 11,856

*Source: Lehman Brothers
**Source: Lehman Brothers, Lipper Analytical Services, Inc., and The Wall
Street Journal