Dreyfus lion "d" logo (reg.tm)
Dreyfus logo (reg.tm)
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. 552AR989
LifeTime
Portfolios, Inc.
Annual Report
September 30, 1998
DREYFUS LIFETIME PORTFOLIOS, INC.
- -----------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the following performance figures for the various
classes of shares in Dreyfus LifeTime Portfolios, Inc. These results were
achieved in spite of the major correction that affected the equity markets in
the past few months.
DREYFUS LIFETIME PORTFOLIOS, INC.
TOTAL RETURN, 12 MONTHS ENDED SEPTEMBER 30, 1998.
<TABLE>
<CAPTION>
Lehman Brothers
Standard & Poor's 500 Intermediate
Customized Composite Stock Government/Corporate
Portfolio Portfolio Blended Index Price Index Bond Index
(Class) Total Return* Total Return** Total Return* Total Return*
________ _____________ _______________ _________________________ __________________________
Growth and Income
<S> <C> <C> <C> <C>
Investor Shares 6.04% 6.53% 9.08% 10.43%
Restricted Shares 6.28%
Income
Investor Shares 8.92% 9.59%
Restricted Shares 9.14%
Growth
Investor Shares 2.97% 3.52%
Restricted Shares 3.17%
</TABLE>
ECONOMIC REVIEW
So far in 1998, the main regions of the world have had very different economic
fundamentals. The U.S. entered the year with a strong economy near full
employment, and unemployment only slightly above 4%. The tight labor market led
the Federal Reserve to contemplate a rise in interest rates early in the year.
The U.S. economy cooled enough that the Fed decided to stand pat for a number of
months before cutting the Federal Funds rate in September and October. Evidence
of economic cooling continued to accumulate and worries about the world economy
intensified. World economic weakness then shifted expectations towards monetary
easing. After many years of subpar economic growth, continental Europe moved
into a better economic expansion. Unlike the U.S., Europe has a substantial
excess capacity of productive plant and labor. In Asia, weak economies were
everywhere as a result of the Asian financial crisis. The Latin American
economies weakened as the financial stresses spread throughout that region.
A main influence on the U.S. economy this year was the foreign financial
crisis and cooling of the world economy. The positive effects hit first. Actual
inflation and expected inflation dropped, causing a decline in long-term
Treasury bond yields and mortgage rates. This caused a boom in housing. The fall
in inflation helped the consumer sector as more of the growth in consumer income
was left over after inflation to buy goods and services. Consumers benefited
from a combination of good growth in income after inflation, a strong labor
market and past increases in the prices of assets they owned.
The negative effect of Asian weakness was directed towards the industrial
sector more than the consumer sector. Corporate profits weakened, especially in
sectors sensitive to Asia such as world-traded commodities (oil, metals and
paper) and exporters. One result of the industrial weakness was to cool off a
U.S. economy that had been growing rapidly.
The major change in the economic outlook over recent months has been a
downward shift in expectations for world economic growth. A credit crunch
developed in emerging countries and former communist countries, sharply reducing
the economic outlook for Asia and Latin America as well as for
commodity-exporting countries throughout the world. The effect on Europe and the
U.S. has been to lower expectations of profit growth and drive down bond yields.
Market sentiment now anticipates further monetary ease in the U.S. and other
industrial countries as the evidence of a weaker world economy has accumulated.
There appears to be a shift in the priorities of key policymakers from fighting
potential inflation to restimulating future world economic growth.
MARKET OVERVIEW
The 12 months ended September 30, 1998 encompassed some very different market
phases, with stock market strength during much of the period followed by a sharp
decline towards the end of the period. Over the 12 months, the total return on
the Standard & Poor' s 500 Composite Stock Price Index was 9.08%. Returns on
mid-cap and small-cap stock indices were weaker, with a negative total return on
small-cap indices.
Three key trends influenced stock market behavior during the fiscal year.
First, the Federal Reserve kept the Federal funds rate flat at 5.5% for most of
the fiscal year, before 25 basis point cuts in both September and October.
Sentiment changed from expectations of a possible Fed Funds rate increase to
widespread expectations of lower interest rates, especially after the Fed easing
in late September. Second, weakness in the economies of emerging countries
contributed to declining commodity prices and a drop in long-term Treasury bond
yields to multidecade lows. Third, expectations for corporate profits dropped,
first in the sectors sensitive to Asian developments such as oil, basic
materials and exporters and then for a broader list of stocks.
The trigger for the sharp decline in stocks at the end of the period appeared
to be the Russian default in the summer of 1998. This resulted in deepening
concerns about weaker economic growth and corporate profits. There was also a
global margin call on risky assets held by hedge funds and financial
institutions. This raised the cost of debt financing for many corporations and
many emerging countries. Expectations for economic activity in emerging
countries in Asia and Latin America shifted down sharply while expectations for
U.S. corporate profits weakened somewhat. Despite the fall in Treasury bond
yields, financial stocks led the summer sell-off due to concerns about financial
contagion from emerging countries and potential loan losses by financial
institutions.
The erosion of expectations about corporate profit growth over the last year
contributed to an outperformance by a small group of super-cap growth stocks
until late in the fiscal year. Investors had more confidence in the prospect for
strong, persistent earnings growth for this small group of stocks than for the
broad market. Value stocks, which often have greater cyclical sensitivity to
earnings fluctuations, lagged behind these super-growth stocks. In addition,
many of the financial stocks which fall into the value category fell sharply
following the Russian default.
The fiscal year ended September 1998 was characterized by very different
performances of the various market sectors. The largest cap growth stocks did
best, followed by large-cap stocks in general, with mid-cap and small-cap stocks
lagging behind. For example, the total return for the fiscal year on the Russell
1000 Index with a heavy large-cap representation was 7.36%, with the Russell
1000 Growth Index returning 11.11% while the Russell 1000 Value Index returned
3.59%. The return on the Russell Midcap Index was -6.01% while the small-cap
Russell 2000 Index return was -19.02%.***
PORTFOLIO FOCUS
As you know, the Dreyfus LifeTime Portfolios, Inc. provide the opportunity to
invest in three distinct portfolios that are specifically designed for investors
with differing time horizons and tolerances for risk.
The Growth Portfolio is designed for the investor with the highest risk
tolerance and/or the longest time horizon. This portfolio has the highest
baseline allocation to the equity markets, with the ability to shift
considerably from that structure in line with Mellon Equity's disciplined asset
allocation process. For most of the last year, the Growth Portfolio was at its
minimum equity allocation, with an overweight to bonds. As stock prices
continued to rise and corporate earnings ebbed, the equity market consistently
appeared overvalued. The portfolio's underweight to equities proved beneficial
when the stock market corrected severely in July and August. After the selloff,
Mellon Equity's asset allocation process evaluated price levels and deemed them
more in line with a fair valuation. In early September, the Growth Portfolio
moved back to its normal allocation to stocks as the market recovered some of
its losses from the prior months. Performance over longer time periods remained
strong. As of the end of September, domestic allocations remained in line with
the benchmark allocation. The portfolio contained 18% domestic fixed-income
securities versus the benchmark allocation of 17%. The domestic equity
allocation consisted of 55% in large capitalization equities (versus neutral
allocation of 54%) and 15% in small capitalization equities (versus neutral
allocation of 14%). The international equity allocation ended the period at 10%,
versus its baseline allocation of 12%.
The Growth and Income Portfolio is designed for an investor with a moderate
tolerance for risk and/or an intermediate time horizon. Like the Growth
Portfolio, it was at its minimum equity allocation for most of the last year and
benefited from the underweight when the market corrected. It too moved back to
its neutral allocation in September and remained there at month-end. At the end
of September, domestic bonds made up 47% of the Portfolio, compared to a neutral
allocation of 45%. Domestic equities were also in line with their neutral
position; large capitalization equities were approximately 38% (versus 36%
neutral allocation) of the Portfolio and small capitalization equities were 10%
(versus 9% neutral allocation) of the Portfolio. The international equity
allocation was 4%, generally in line with its benchmark allocation of 5%.
The Income Portfolio is designed for the more conservative investor. Its asset
allocation is bond-dominated, and does not vary from its long-term targets. The
bond and stock components are both passively managed. The bond-dominated
allocation provided the intended protection when the stock market corrected in
August.
The large-capitalization equity components of both the Growth and Growth and
Income Portfolios are actively managed using Mellon Equity's quantitative equity
discipline. Sector allocations mirror those of the S&P 500, with Portfolio
performance relative to the benchmark dependent on stock selection. During the
past year, the large capitalization equity Portfolio modestly underperformed the
S&P 500. Stocks that contributed positively to performance included
Schering-Plough, Lexmark International Group Cl. A., EMC, and Cisco Systems,
while Tellabs, Chase Manhattan Corp., HEALTHSOUTH, and Adaptec detracted from
performance.
Thank you for your investment in Dreyfus LifeTime Portfolios, Inc. We are
carefully monitoring market developments in order to continue bringing you
competitive returns.
Sincerely,
[Steven A. Falci signature logo]
Steven A. Falci
Portfolio Manager
October 20, 1998
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 percentage 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 3,000 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 (both described above) and the
90-day Treasury Bill rate, as it changes from time to time, and is weighted to
the aforementioned baseline percentages.
***SOURCE: LIPPER ANALYTICAL SERVICES, INC. The Russell 1000 Index measures
the performance of the 1,000 largest companies in the Russell 3000 Index, which
represents approximately 89% of the total market capitalization of the Russell
3000 Index. The Russell 1000 Growth Index measures the performance of those
Russell 1000 companies with higher price-to-book ratios and higher forecasted
growth values. The Russell 1000 Value Index measures the performance of those
Russell 1000 companies with lower price-to-book ratios and lower forecasted
growth values. The Russell Midcap Index consists of the bottom 800 securities in
the Russell 1000 Index as ranked by total market capitalization and is a widely
accepted measure of medium-cap stock market performance. The Russell 2000 Index
is composed of the 2,000 smallest companies in the Russell 3000 Index. The
Russell 3000 Index is composed of 3,000 of the largest U.S. companies by market
capitalization. All indices are unmanaged and include reinvested dividends.
DREYFUS LIFETIME PORTFOLIOS, INC., GROWTH AND INCOME PORTFOLIO SEPTEMBER 30,
1998
- -----------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE INVESTOR SHARES AND
RESTRICTED 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
Dollars
$21,791
Standard & Poor's 500 Composite Stock Price Index*
$17,519
Dreyfus LifeTime Portfolios--Growth and Income Portfolio (Investor Shares)
$17,394
Dreyfus LifeTime Portfolios--Growth and Income Portfolio (Restricted Shares)
$16,533
Customized Blended Index**
* Source: Lipper Analytical Services, Inc.
**Source: Lipper Analytical Services, Inc., Lehman Brothers, Morgan Stanley &
Co. Incorporated and J.P. Morgan & Co. Incorporated
Average Annual Total Returns
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
Investor Shares Restricted Shares
_______________________________________________________ _________________________________________________________
Period Ended 9/30/98 Period Ended 9/30/98
___________________ ________________
<S> <C> <C> <C>
1 Year 6.04% 1 Year 6.28%
From Inception (3/31/95) 17.38 From Inception (3/31/95) 17.13
- ------------------------
</TABLE>
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in each of the Investor
shares and Restricted shares of the Growth and Income Portfolio on 3/31/95
(Inception Date) to a $10,000 investment made on that date in the Standard &
Poor' s 500 Composite Stock Price Index ("S&P 500 Index") 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.
The Customized Blended Index is calculated on a year-to-year basis. 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. 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 3,000 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. 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., INCOME PORTFOLIO SEPTEMBER 30, 1998
- -----------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE INVESTOR SHARES AND
RESTRICTED SHARES OF DREYFUS LIFETIME PORTFOLIOS, INC.--INCOME PORTFOLIO WITH
THE LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CORPORATE BOND INDEX AND A
CUSTOMIZED BLENDED INDEX
Dollars
$14,921
Customized Blended Index**
$14,388
Dreyfus LifeTime Portfolios--Income Portfolio (Restricted Shares)
$14,268
Dreyfus LifeTime Portfolios--Income Portfolio (Investor Shares)
$13,407
Lehman Brothers Intermediate Government/Corporate Bond Index*
* Source: Lehman Brothers
**Source: Lehman Brothers, Lipper Analytical Services, Inc. and The Wall
Street Journal
<TABLE>
<CAPTION>
Average Annual Total Returns
- -----------------------------------------------------------------------------
Investor Shares Restricted Shares
_______________________________________________________ _________________________________________________________
Period Ended 9/30/98 Period Ended 9/30/98
___________________ ________________
<S> <C> <C> <C>
1 Year 8.92% 1 Year 9.14%
From Inception (3/31/95) 10.69 From Inception (3/31/95) 10.95
- ------------------------
</TABLE>
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in each of the Investor
shares and Restricted shares of the Income Portfolio on 3/31/95 (Inception Date)
to a $10,000 investment made on that date in the Lehman Brothers Intermediate
Government/Corporate Bond Index 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. The Customized Blended
Index is calculated on a year-to-year basis. 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
indices 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, 1998
- -----------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE INVESTOR SHARES AND
RESTRICTED SHARES OF DREYFUS LIFETIME PORTFOLIOS, INC.--GROWTH PORTFOLIO WITH
THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX AND A CUSTOMIZED BLENDED
INDEX
Dollars
$21,791
Standard & Poor's 500 Composite Stock Price Index*
$19,752
Dreyfus LifeTime Portfolios-- Growth Portfolio (Restricted Shares)
$19,610
Dreyfus LifeTime Portfolios-- Growth Portfolio (Investor Shares)
$18,169
Customized Blended Index**
* 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
- -----------------------------------------------------------------------------
Investor Shares Restricted Shares
_______________________________________________________ _________________________________________________________
Period Ended 9/30/98 Period Ended 9/30/98
___________________ ________________
<S> <C> <C> <C>
1 Year 2.97% 1 Year 3.17%
From Inception (3/31/95) 21.22 From Inception (3/31/95) 21.47
- ------------------------
</TABLE>
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in each of the Investor
shares and Restricted shares of the Growth Portfolio on 3/31/95 (Inception Date)
to a $10,000 investment made on that date in the Standard & Poor's 500 Composite
Stock Price Index ("S&P 500 Index") 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. The Customized Blended
Index is calculated on a year-to-year basis. 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. 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 3,000 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. 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, 1998
Principal
Bonds and Notes--65.0% Amount Value
- -------------------------------------------------------
______________ _______________
Financial--11.1% American Express Credit Account Master Trust,
Asset Backed Ctfs., Ser. 1997-1, Cl. A,
<S> <C> <C>
6.40%, 4/15/2005 . . . . . . . . . . . . . . . . . $ 1,000,000 $ 1,048,529
Citibank Credit Card Master Trust,
Asset Backed Ctfs., Ser. 1998-1, Cl. A,
5.75%, 1/15/2003 . . . . . . . . . . . . . . . . . 1,000,000 1,042,515
Chase Manhattan, Sub. Notes,
7.125%, 6/15/2009 . . . . . . . . . . . . . . . . 1,000,000 1,079,609
Federal Farm Credit Bank, Notes,
5.84%, 6/8/2005 . . . . . . . . . . . . . . . . . 1,000,000 1,053,574
Southern New England, Bonds,
6.50%, 2/15/2002 . . . . . . . . . . . . . . . . . 1,000,000 1,048,040
Worldcom, Bonds,
6.40%, 8/15/2005 . . . . . . . . . . . . . . . . . 500,000 525,412
______________
5,797,679
______________
Industrial--7.1% Allied-Signal, Notes,
6.20%, 2/01/2008 . . . . . . . . . . . . . . . . . 500,000 524,554
Campbell Soup, Bonds,
6.15%, 12/01/2002 . . . . . . . . . . . . . . . . 1,000,000 1,045,987
duPont (E.I.) de Nemours & Co., Deb.,
6.50%, 9/01/2002 . . . . . . . . . . . . . . . . . 1,000,000 1,060,649
Mobil, Deb.,
8.375%, 2/12/2001 . . . . . . . . . . . . . . . . 1,000,000 1,077,091
______________
3,708,281
______________
U.S. Government Securities--46.8% U.S. Treasury Notes:
6%, 8/15/1999 . . . . . . . . . . . . . . . . . . 1,000,000 1,011,680
6.375%, 1/15/2000 . . . . . . . . . . . . . . . . 1,300,000 1,329,887
6.875%, 3/31/2000 . . . . . . . . . . . . . . . . 2,000,000 2,069,200
5.875%, 6/30/2000 . . . . . . . . . . . . . . . . 2,000,000 2,048,920
5.25%, 1/31/2001 . . . . . . . . . . . . . . . . . 1,200,000 1,223,892
7.75%, 2/15/2001 . . . . . . . . . . . . . . . . . 1,400,000 1,505,098
6.375%, 3/31/2001 . . . . . . . . . . . . . . . . 2,000,000 2,093,400
8%, 5/15/2001 . . . . . . . . . . . . . . . . . . 1,000,000 1,088,940
7.50%, 11/15/2001 . . . . . . . . . . . . . . . . 835,000 910,442
6.625%, 3/31/2002 . . . . . . . . . . . . . . . . 1,350,000 1,447,281
6.25%, 6/30/2002 . . . . . . . . . . . . . . . . . 1,080,000 1,149,001
6.375%, 8/15/2002 . . . . . . . . . . . . . . . . 1,150,000 1,230,822
6.25%, 2/15/2003 . . . . . . . . . . . . . . . . . 1,800,000 1,935,468
7.875%, 11/15/2004 . . . . . . . . . . . . . . . . 1,360,000 1,611,940
7.50%, 2/15/2005 . . . . . . . . . . . . . . . . . 500,000 585,585
6.50%, 5/15/2005 . . . . . . . . . . . . . . . . . 725,000 813,363
6.875%, 5/15/2006 . . . . . . . . . . . . . . . . 200,000 231,046
DREYFUS LIFETIME PORTFOLIOS, INC., INCOME PORTFOLIO
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1998
Principal
Bonds and Notes--continued Amount Value
- ------------------------------------------------------- ______________ _______________
U.S. Government
Securities (continued) U.S. Treasury Notes (continued):
7%, 7/15/2006 . . . . . . . . . . . . . . . . . . $ 1,085,000 $ 1,263,765
6.125%, 8/15/2007 . . . . . . . . . . . . . . . . 400,000 447,712
5.625%, 5/15/2008 . . . . . . . . . . . . . . . . 500,000 547,600
______________
24,545,042
______________
TOTAL BONDS AND NOTES
(cost $32,899,829) . . . . . . . . . . . . . . . . $34,051,002
______________
______________
Short-Term Investments--34.8%
- -------------------------------------------------------
U.S. Treasury Bills: 4.91%, 10/1/1998 . . . . . . . . . . . . . . . . . . . (a) $ 1,535,000 $ 1,535,000
4.88%, 10/15/1998 . . . . . . . . . . . . . . . . . . 7,547,000 7,534,321
4.92%, 10/22/1998 . . . . . . . . . . . . . . . . . . 1,396,000 1,393,362
4.81%, 10/29/1998 . . . . . . . . . . . . . . . . . . 705,000 702,631
4.90%, 11/12/1998 . . . . . . . . . . . . . . . . . . 303,000 301,579
4.90%, 11/19/1998 . . . . . . . . . . . . . . . . . . 596,000 592,746
4.89%, 11/27/1998 . . . . . . . . . . . . . . . . . . 19,000 18,877
4.61%, 12/17/1998 . . . . . . . . . . . . . . . . . . 4,739,000 4,696,728
4.56%, 12/24/1998 . . . . . . . . . . . . . . . . . . 1,368,000 1,354,553
4.20%, 12/31/1998 . . . . . . . . . . . . . . . . . . 143,000 141,460
______________
TOTAL SHORT-TERM INVESTMENTS
(cost $18,261,308) . . . . . . . . . . . . . . . . $18,271,257
______________
TOTAL INVESTMENTS (cost $51,161,137) . . . . . . . . . . . . . . . . . . . . . . . . . . . 99.8% $52,322,259
_______ ______________
CASH AND RECEIVABLES (NET) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2% $ 122,006
_______ ______________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $52,444,265
_______ ______________
</TABLE>
<TABLE>
<CAPTION>
Notes to Statement of Investments:
- -----------------------------------------------------------------------------
(a) Partially held by the custodian in a segregated account as collateral for
open financial futures positions.
STATEMENT OF FINANCIAL FUTURES SEPTEMBER 30, 1998
Market Value Unrealized
Covered Depreciation
Financial Futures Purchased: Contracts by Contracts Expiration at 9/30/98
_________________________ ________ ___________ _________ ____________
<S> <C> <C> <C> <C>
Standard & Poor's 500. . . . . . . . . . . . . . . . . . 49 $12,568,500 December '98 $(124,567)
___________
</TABLE>
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS LIFETIME PORTFOLIOS, INC., GROWTH AND INCOME PORTFOLIO
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS SEPTEMBER 30, 1998
Common Stocks--37.4% Shares Value
- -------------------------------------------------------
______________ ________________
<S> <C> <C>
Basic Industries--1.2% Dow Chemical . . . . . . . . . . . . . . . . . . . . . 7,300 $ 623,694
Fort James . . . . . . . . . . . . . . . . . . . . . . 14,500 475,781
PPG Industries . . . . . . . . . . . . . . . . . . . . 9,600 523,800
Rohm & Haas . . . . . . . . . . . . . . . . . . . . . 12,500 347,656
Southdown . . . . . . . . . . . . . . . . . . . . . . 3,100 139,500
USG . . . . . . . . . . . . . . . . . . . . . . . . . 4,200 181,650
_____________
2,292,081
_____________
Capital Spending--9.3% AlliedSignal . . . . . . . . . . . . . . . . . . . . . 11,200 396,200
America Online . . . . . . . . . . . . . . . . . . . . (a) 4,300 478,375
Caterpillar . . . . . . . . . . . . . . . . . . . . . 16,000 713,000
Cisco Systems . . . . . . . . . . . . . . . . . . . . (a) 13,500 834,469
Dell Computer . . . . . . . . . . . . . . . . . . . . (a) 16,800 1,104,600
EMC . . . . . . . . . . . . . . . . . . . . . . . . . (a) 17,100 977,906
General Electric . . . . . . . . . . . . . . . . . . . 9,300 739,931
HBO & Co . . . . . . . . . . . . . . . . . . . . . . . 10,500 303,187
Honeywell . . . . . . . . . . . . . . . . . . . . . . 3,100 198,594
Ingersoll-Rand . . . . . . . . . . . . . . . . . . . . 23,000 872,563
Intel . . . . . . . . . . . . . . . . . . . . . . . . 21,700 1,860,775
International Business Machines . . . . . . . . . . . 10,900 1,395,200
Lexmark International Group, Cl. A . . . . . . . . . . (a) 9,900 686,194
Lucent Technologies . . . . . . . . . . . . . . . . . 11,500 794,219
Microsoft . . . . . . . . . . . . . . . . . . . . . . (a) 22,200 2,443,387
Oracle . . . . . . . . . . . . . . . . . . . . . . . . (a) 46,600 1,357,225
Sun Microsystems . . . . . . . . . . . . . . . . . . . (a) 13,300 662,506
Tellabs . . . . . . . . . . . . . . . . . . . . . . . (a) 13,100 521,544
Tyco International . . . . . . . . . . . . . . . . . . 13,000 718,250
United Technologies . . . . . . . . . . . . . . . . . 9,300 710,869
_____________
17,768,994
_____________
Consumer Cyclical--4.5% American Greetings, Cl. A . . . . . . . . . . . . . . 4,700 185,944
Carnival . . . . . . . . . . . . . . . . . . . . . . . 8,900 283,131
Chrysler . . . . . . . . . . . . . . . . . . . . . . . 12,000 574,500
Clear Channel Communications . . . . . . . . . . . . . (a) 11,100 527,250
Federal-Mogul . . . . . . . . . . . . . . . . . . . . 5,400 252,450
Federated Department Stores . . . . . . . . . . . . . (a) 16,800 611,100
Ford Motor . . . . . . . . . . . . . . . . . . . . . . 16,700 783,856
Gannett . . . . . . . . . . . . . . . . . . . . . . . 3,500 187,469
Gap . . . . . . . . . . . . . . . . . . . . . . . . . 10,600 559,150
K mart . . . . . . . . . . . . . . . . . . . . . . . . (a) 18,300 218,456
Philips Electronics, N.V . . . . . . . . . . . . . . . 7,000 373,625
Promus Hotel . . . . . . . . . . . . . . . . . . . . . 5,700 157,106
Safeway . . . . . . . . . . . . . . . . . . . . . . . (a) 17,600 816,200
Sears, Roebuck & Co . . . . . . . . . . . . . . . . . 8,100 357,919
TJX . . . . . . . . . . . . . . . . . . . . . . . . 30,400 541,500
Time Warner . . . . . . . . . . . . . . . . . . . . . 5,900 516,619
Tommy Hilfiger . . . . . . . . . . . . . . . . . . . . (a) 5,500 225,500
Wal-Mart Stores . . . . . . . . . . . . . . . . . . . 24,300 1,327,388
_____________
8,499,163
_____________
DREYFUS LIFETIME PORTFOLIOS, INC., GROWTH AND INCOME PORTFOLIO
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1998
Common Stocks (continued) Shares Value
- ------------------------------------------------------- ______________ ______________
Consumer Staples--3.7% Coca-Cola . . . . . . . . . . . . . . . . . . . . . . 15,300 $ 881,662
Dial . . . . . . . . . . . . . . . . . . . . . . . . . 13,000 268,125
Eastman Kodak . . . . . . . . . . . . . . . . . . . . 9,500 734,469
General Mills . . . . . . . . . . . . . . . . . . . . 10,500 735,000
Interstate Bakeries . . . . . . . . . . . . . . . . . 5,000 155,000
Newell . . . . . . . . . . . . . . . . . . . . . . . . 12,600 580,388
PepsiCo . . . . . . . . . . . . . . . . . . . . . . . 16,400 482,775
Philip Morris . . . . . . . . . . . . . . . . . . . . 20,900 962,706
Procter & Gamble . . . . . . . . . . . . . . . . . . . 9,700 688,094
Ralston-Ralston Purina Group . . . . . . . . . . . . . 19,200 561,600
Sara Lee . . . . . . . . . . . . . . . . . . . . . . . 5,300 286,200
Unilever, N.V . . . . . . . . . . . . . . . . . . . . 7,700 471,625
Wrigley, (Wm.) Jr . . . . . . . . . . . . . . . . . . 2,300 174,656
_____________
6,982,300
_____________
Energy--3.1% Amoco . . . . . . . . . . . . . . . . . . . . . . . . 4,700 253,212
Ashland . . . . . . . . . . . . . . . . . . . . . . . 5,400 249,750
Coastal . . . . . . . . . . . . . . . . . . . . . . . 15,200 513,000
Columbia Energy Group . . . . . . . . . . . . . . . . 7,200 422,100
Diamond Offshore Drilling . . . . . . . . . . . . . . 6,800 176,800
El Paso Energy . . . . . . . . . . . . . . . . . . . . 5,500 178,406
Exxon . . . . . . . . . . . . . . . . . . . . . . . . 22,200 1,558,163
Mobil . . . . . . . . . . . . . . . . . . . . . . . . 13,800 1,047,938
Phillips Petroleum . . . . . . . . . . . . . . . . . . 13,600 613,700
Sun . . . . . . . . . . . . . . . . . . . . . . . . . 9,500 304,000
Texaco . . . . . . . . . . . . . . . . . . . . . . . . 9,500 595,531
_____________
5,912,600
_____________
Health Care--5.1% Abbott Laboratories . . . . . . . . . . . . . . . . . 34,600 1,502,937
American Home Products . . . . . . . . . . . . . . . . 6,700 350,912
Amgen . . . . . . . . . . . . . . . . . . . . . . . . (a) 11,200 846,300
Biomet . . . . . . . . . . . . . . . . . . . . . . . . 9,800 339,937
Bristol-Myers Squibb . . . . . . . . . . . . . . . . . 10,700 1,111,463
Guidant . . . . . . . . . . . . . . . . . . . . . . . 6,500 482,625
HEALTHSOUTH . . . . . . . . . . . . . . . . . . . . . (a) 24,200 255,613
Johnson & Johnson . . . . . . . . . . . . . . . . . . 16,900 1,322,425
Lilly (Eli) . . . . . . . . . . . . . . . . . . . . . 6,700 524,694
Schering-Plough . . . . . . . . . . . . . . . . . . . 14,900 1,543,081
Warner-Lambert . . . . . . . . . . . . . . . . . . . . 17,800 1,343,900
Wellpoint Health Networks . . . . . . . . . . . . . . (a) 700 39,244
_____________
9,663,131
_____________
Interest Sensitive--5.9% Allstate . . . . . . . . . . . . . . . . . . . . . . . 17,200 717,025
Ambac Financial Group . . . . . . . . . . . . . . . . 8,600 412,800
American Express . . . . . . . . . . . . . . . . . . . 6,500 504,563
BankAmerica . . . . . . . . . . . . . . . . . . . . . 6,300 378,788
Bear Stearns . . . . . . . . . . . . . . . . . . . . . 12,800 396,000
DREYFUS LIFETIME PORTFOLIOS, INC., GROWTH AND INCOME PORTFOLIO
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1998
Common Stocks (continued) Shares Value
- -------------------------------------------------------
__________ ______________
Interest Sensitive (continued) Chase Manhattan . . . . . . . . . . . . . . . . . . . 23,200 $ 1,003,400
CIGNA . . . . . . . . . . . . . . . . . . . . . . . . 4,900 324,012
Citicorp . . . . . . . . . . . . . . . . . . . . . . . 1,400 130,113
Comerica . . . . . . . . . . . . . . . . . . . . . . . 11,600 635,825
Edwards (A.G.) . . . . . . . . . . . . . . . . . . . . 5,700 172,781
EXEL, Cl. A . . . . . . . . . . . . . . . . . . . . . 11,300 711,900
Fannie Mae . . . . . . . . . . . . . . . . . . . . . . 9,300 597,525
First Chicago NBD . . . . . . . . . . . . . . . . . . 11,200 767,200
Fleet Financial Group . . . . . . . . . . . . . . . . 10,800 793,125
Golden West Financial . . . . . . . . . . . . . . . . 4,100 335,431
Lehman Brothers Holdings . . . . . . . . . . . . . . . 3,100 87,575
MGIC Investment . . . . . . . . . . . . . . . . . . . 6,300 232,313
NationsBank . . . . . . . . . . . . . . . . . . . . . (a) 18,300 979,050
SLM Holding . . . . . . . . . . . . . . . . . . . . . 17,400 564,412
SunAmerica . . . . . . . . . . . . . . . . . . . . . . 11,300 689,300
SunTrust Banks . . . . . . . . . . . . . . . . . . . . 8,800 545,600
Travelers Group . . . . . . . . . . . . . . . . . . . (a) 8,500 318,750
_____________
11,297,488
_____________
Mining & Metals--.3% Aluminum Company of America . . . . . . . . . . . . . 4,900 347,900
USX-U.S. Steel Group . . . . . . . . . . . . . . . . . 7,900 188,612
_____________
536,512
_____________
Transportation--.4% AMR . . . . . . . . . . . . . . . . . . . . . . . . . (a) 7,000 388,062
Burlington Northern Santa Fe . . . . . . . . . . . . . 14,900 476,800
_____________
864,862
_____________
Utilities--3.9% AT&T . . . . . . . . . . . . . . . . . . . . . . . . . 17,100 999,281
AirTouch Communications . . . . . . . . . . . . . . . (a) 10,600 604,200
Ameritech . . . . . . . . . . . . . . . . . . . . . . 31,100 1,473,362
Bell Atlantic . . . . . . . . . . . . . . . . . . . . 9,500 460,156
BellSouth . . . . . . . . . . . . . . . . . . . . . . 16,500 1,241,625
Consolidated Edison . . . . . . . . . . . . . . . . . 11,100 578,588
FPL Group . . . . . . . . . . . . . . . . . . . . . . 12,400 864,125
FirstEnergy . . . . . . . . . . . . . . . . . . . . . 9,500 295,094
MCI WorldCom . . . . . . . . . . . . . . . . . . . . . (a) 14,500 708,688
Pinnacle West Capital . . . . . . . . . . . . . . . . 5,300 237,506
_____________
7,462,625
_____________
TOTAL COMMON STOCKS
(cost $64,579,607) . . . . . . . . . . . . . . . . $ 71,279,756
_____________
DREYFUS LIFETIME PORTFOLIOS, INC., GROWTH AND INCOME PORTFOLIO
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1998
Principal
Bonds and Notes--46.7% Amount Value
________________________________________________________________________________ _____________ ____________
Finance--6.6% American Express Credit Account Master Trust,
Asset Backed Ctfs., Ser. 1997-1, Cl. A,
6.40%, 4/15/2005 . . . . . . . . . . . . . . . . . $ 3,000,000 $ 3,145,587
American General, Notes,
7.75%, 4/1/2005 . . . . . . . . . . . . . . . . . 500,000 558,055
Associates N.A., Sr. Notes,
6%, 6/15/2000 . . . . . . . . . . . . . . . . . . 1,000,000 1,012,334
BankAmerica, Sub. Notes,
7.875%, 12/1/2002 . . . . . . . . . . . . . . . . 1,000,000 1,092,185
Chase Manhattan, Sub. Notes,
7.125%, 6/15/2009 . . . . . . . . . . . . . . . . 2,000,000 2,159,218
Citibank Credit Card Master Trust,
Asset Backed Ctfs., Ser. 1998-1, Cl. A,
5.75%, 1/15/2003 . . . . . . . . . . . . . . . . . 3,500,000 3,552,500
Citicorp, Sr. Notes,
6.60%, 8/1/2000 . . . . . . . . . . . . . . . . . 1,000,000 1,020,184
_____________
12,540,063
_____________
Industrial--8.2% American Home Products, Notes,
7.70%, 2/15/2000 . . . . . . . . . . . . . . . . . 1,000,000 1,035,817
Amoco, Notes,
6.25%, 10/15/2004 . . . . . . . . . . . . . . . . 2,000,000 2,148,610
Campbell Soup, Bonds,
6.15%, 12/1/2002 . . . . . . . . . . . . . . . . . 4,000,000 4,183,948
duPont (E.I.) de Nemours & Co., Notes,
6.50%, 9/1/2002 . . . . . . . . . . . . . . . . . 3,000,000 3,181,947
Penney (J.C.), Deb.:
6.95%, 4/1/2000 . . . . . . . . . . . . . . . . . 800,000 821,426
9.05%, 3/1/2001 . . . . . . . . . . . . . . . . . 1,000,000 1,089,292
Philip Morris, Notes,
7.625%, 5/15/2002 . . . . . . . . . . . . . . . . 1,000,000 1,076,699
Norfolk Southern, Notes,
6.70%, 5/1/2000 . . . . . . . . . . . . . . . . . 2,000,000 2,046,156
_____________
15,583,895
_____________
Utilities--.8% MCI WorldCom, Sr. Notes,
6.40%, 8/15/2005 . . . . . . . . . . . . . . . . . 1,500,000 1,576,236
_____________
U.S. Government & Agencies--31.1% Federal National Mortgage Association, Deb.,
8.50%, 2/1/2005 . . . . . . . . . . . . . . . . . 500,000 525,085
Federal National Mortgage Association,
Med. Term Notes,
5.73%, 10/14/1999 . . . . . . . . . . . . . . . . 3,000,000 3,020,250
Tennessee Valley Authority,
6.375%, 6/15/2005 . . . . . . . . . . . . . . . . 1,950,000 2,090,472
U.S. Treasury Notes:
7.125%, 9/30/1999 . . . . . . . . . . . . . . . . 2,000,000 2,049,640
7.875%, 11/15/1999 . . . . . . . . . . . . . . . . 3,000,000 3,109,680
7.75%, 1/31/2000 . . . . . . . . . . . . . . . . . 2,250,000 2,343,555
DREYFUS LIFETIME PORTFOLIOS, INC., GROWTH AND INCOME PORTFOLIO
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1998
Principal
Bonds and Notes (continued) Amount Value
- ------------------------------------------------------- ______________ _______________
U.S. Government &
Agencies (continued) U.S. Treasury Notes (continued):
8.5%, 2/15/2000 . . . . . . . . . . . . . . . . . $ 1,150,000 $ 1,211,077
6.75%, 4/30/2000 . . . . . . . . . . . . . . . . . 2,300,000 2,379,097
5.75%, 10/31/2000 . . . . . . . . . . . . . . . . 1,400,000 1,438,262
5.625%, 11/30/2000 . . . . . . . . . . . . . . . . 1,100,000 1,127,907
5.25%, 1/31/2001 . . . . . . . . . . . . . . . . . 4,400,000 4,487,604
5.375%, 2/15/2001 . . . . . . . . . . . . . . . . 250,000 255,532
6.375%, 3/31/2001 . . . . . . . . . . . . . . . . 2,300,000 2,407,410
8%, 5/15/2001 . . . . . . . . . . . . . . . . . . 4,300,000 4,682,442
6.125%, 12/31/2001 . . . . . . . . . . . . . . . . 3,000,000 3,156,600
7.50%, 5/15/2002 . . . . . . . . . . . . . . . . . 1,850,000 2,041,253
5.75%, 8/15/2003 . . . . . . . . . . . . . . . . . 930,000 986,972
5.875%, 2/15/2004 . . . . . . . . . . . . . . . . 1,000,000 1,072,790
7.25%, 5/15/2004 . . . . . . . . . . . . . . . . . 2,000,000 2,283,180
7.25%, 8/15/2004 . . . . . . . . . . . . . . . . . 2,600,000 2,982,512
7.875%, 11/15/2004 . . . . . . . . . . . . . . . . 1,660,000 1,967,515
7.50%, 2/15/2005 . . . . . . . . . . . . . . . . . 1,050,000 1,229,729
5.875%, 11/15/2005 . . . . . . . . . . . . . . . . 3,050,000 3,324,286
7%, 7/15/2006 . . . . . . . . . . . . . . . . . . 2,000,000 2,329,520
6.50%, 10/15/2006 . . . . . . . . . . . . . . . . 2,500,000 2,837,675
6.25%, 2/15/2007 . . . . . . . . . . . . . . . . . 3,400,000 3,818,608
_____________
59,158,653
_____________
TOTAL BONDS and NOTES
(cost $85,383,231) . . . . . . . . . . . . . . . . $ 88,858,847
_____________
Short-Term Investments--15.3%
- -------------------------------------------------------
U.S. Treasury Bills: 4.87%, 10/15/1998 . . . . . . . . . . . . . . . . . . (b) $20,630,000 $ 20,595,342
4.85%, 10/29/1998 . . . . . . . . . . . . . . . . . . 101,000 100,661
4.89%, 11/12/1998 . . . . . . . . . . . . . . . . . . 118,000 117,447
4.90%, 11/19/1998 . . . . . . . . . . . . . . . . . . 164,000 163,104
4.58%, 12/17/1998 . . . . . . . . . . . . . . . . . . (b) 6,567,000 6,508,422
4.43%, 12/24/1998 . . . . . . . . . . . . . . . . . . 1,683,000 1,666,456
_____________
TOTAL SHORT-TERM INVESTMENTS
(cost $29,139,929) . . . . . . . . . . . . . . . . $ 29,151,432
_____________
TOTAL INVESTMENTS (cost $179,102,767). . . . . . . . . . . . . . . . . . . . . . . . . . . 99.4% $189,290,035
_______ _____________
CASH AND RECEIVABLES (NET) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6% $ 1,083,435
_______ _____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $190,373,470
_______ _____________
</TABLE>
<TABLE>
<CAPTION>
Notes to Statement of Investments:
- -----------------------------------------------------------------------------
(a) Non-income producing.
(b) Partially held by the custodian in a segregated account as collateral for
open financial futures positions.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS LIFETIME PORTFOLIOS, INC., GROWTH AND INCOME PORTFOLIO
- -----------------------------------------------------------------------------
STATEMENT OF FINANCIAL FUTURES SEPTEMBER 30, 1998
Unrealized
Market Value Appreciation/
Covered (Depreciation)
Financial Futures Purchased: Contracts by Contracts Expiration at 9/30/98
_________________________ ________ ___________ _________ ____________
<S> <C> <C> <C> <C>
Australian All Ordinaries. . . . . . . . . . . . . . . . 8 $ 306,993 December '98 $ (2,100)
CAC 40 . . . . . . . . . . . . . . . . . . . . . . . . . 44 1,218,504 December '98 (230,289)
Deutsche Akteinindex . . . . . . . . . . . . . . . . . . 6 1,535,571 December '98 (248,288)
Financial Times. . . . . . . . . . . . . . . . . . . . . 30 2,552,177 December '98 (116,772)
Hang Seng. . . . . . . . . . . . . . . . . . . . . . . . 12 598,474 October '98 (13,178)
Nikkei 300 . . . . . . . . . . . . . . . . . . . . . . . 146 2,254,806 December '98 (138,963)
Russell 2000 . . . . . . . . . . . . . . . . . . . . . . 101 18,445,125 December '98 235,865
Standard & Poor's 500. . . . . . . . . . . . . . . . . . 2 513,000 December '98 (3,566)
__________
$ (517,291)
__________
</TABLE>
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS LIFETIME PORTFOLIOS, INC., GROWTH PORTFOLIO
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS SEPTEMBER 30, 1998
Common Stocks--54.4% Shares Value
- ------------------------------------------------------- ______________ _______________
<S> <C> <C>
Basic Industries--1.7% Dow Chemical . . . . . . . . . . . . . . . . . . . . . 3,300 $ 281,944
Fort James . . . . . . . . . . . . . . . . . . . . . . 6,600 216,563
PPG Industries . . . . . . . . . . . . . . . . . . . . 4,400 240,075
Rohm & Haas . . . . . . . . . . . . . . . . . . . . . 5,700 158,531
Southdown . . . . . . . . . . . . . . . . . . . . . . 1,400 63,000
USG . . . . . . . . . . . . . . . . . . . . . . . . . 1,900 82,175
______________
1,042,288
______________
Capital Spending--13.5% AlliedSignal . . . . . . . . . . . . . . . . . . . . . 5,100 180,412
America Online . . . . . . . . . . . . . . . . . . . . (a) 2,000 222,500
Caterpillar . . . . . . . . . . . . . . . . . . . . . 7,300 325,306
Cisco Systems . . . . . . . . . . . . . . . . . . . . (a) 6,150 380,147
Dell Computer . . . . . . . . . . . . . . . . . . . . (a) 7,800 512,850
EMC . . . . . . . . . . . . . . . . . . . . . . . . . (a) 7,800 446,063
General Electric . . . . . . . . . . . . . . . . . . . 4,300 342,119
HBO & Co . . . . . . . . . . . . . . . . . . . . . . . 4,800 138,600
Honeywell . . . . . . . . . . . . . . . . . . . . . . 1,200 76,875
Ingersoll-Rand . . . . . . . . . . . . . . . . . . . . 10,500 398,344
Intel . . . . . . . . . . . . . . . . . . . . . . . . 10,000 857,500
International Business Machines . . . . . . . . . . . 5,000 640,000
Lexmark International Group, Cl. A . . . . . . . . . . (a) 4,500 311,906
Lucent Technologies . . . . . . . . . . . . . . . . . 5,300 366,031
Microsoft . . . . . . . . . . . . . . . . . . . . . . (a) 10,200 1,122,638
Oracle . . . . . . . . . . . . . . . . . . . . . . . . (a) 21,400 623,275
Sun Microsystems . . . . . . . . . . . . . . . . . . . (a) 6,100 303,856
Tellabs . . . . . . . . . . . . . . . . . . . . . . . (a) 6,000 238,875
Tyco International . . . . . . . . . . . . . . . . . . 6,000 331,500
United Technologies . . . . . . . . . . . . . . . . . 4,300 328,681
______________
8,147,478
______________
Consumer Cyclical--6.5% American Greetings, Cl. A . . . . . . . . . . . . . . 2,200 87,037
Carnival . . . . . . . . . . . . . . . . . . . . . . . 4,100 130,431
Chrysler . . . . . . . . . . . . . . . . . . . . . . . 5,500 263,313
Clear Channel Communications . . . . . . . . . . . . . (a) 5,100 242,250
Federal-Mogul . . . . . . . . . . . . . . . . . . . . 2,500 116,875
Federated Department Stores . . . . . . . . . . . . . (a) 7,700 280,087
Ford Motor . . . . . . . . . . . . . . . . . . . . . . 7,700 361,419
Gannett . . . . . . . . . . . . . . . . . . . . . . . 1,600 85,700
Gap . . . . . . . . . . . . . . . . . . . . . . . . . 4,800 253,200
K mart . . . . . . . . . . . . . . . . . . . . . . . . (a) 8,400 100,275
Philips Electronics, N.V . . . . . . . . . . . . . . . 3,200 170,800
Promus Hotel . . . . . . . . . . . . . . . . . . . . . 2,600 71,663
Safeway . . . . . . . . . . . . . . . . . . . . . . . (a) 8,100 375,637
Sears, Roebuck & Co . . . . . . . . . . . . . . . . . 3,700 163,494
TJX . . . . . . . . . . . . . . . . . . . . . . . . 13,900 247,594
Time Warner . . . . . . . . . . . . . . . . . . . . . 2,700 236,419
Tommy Hilfiger . . . . . . . . . . . . . . . . . . . . (a) 2,500 102,500
Wal-Mart Stores . . . . . . . . . . . . . . . . . . . 11,200 611,800
______________
3,900,494
______________
DREYFUS LIFETIME PORTFOLIOS, INC., GROWTH PORTFOLIO
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1998
Common Stocks (continued) Shares Value
- ------------------------------------------------------- ______________ _______________
Consumer Staples--5.4% Coca-Cola . . . . . . . . . . . . . . . . . . . . . . 7,000 $ 403,375
Dial . . . . . . . . . . . . . . . . . . . . . . . . . 5,900 121,688
Eastman Kodak . . . . . . . . . . . . . . . . . . . . 4,400 340,175
General Mills . . . . . . . . . . . . . . . . . . . . 4,800 336,000
Interstate Bakeries . . . . . . . . . . . . . . . . . 2,300 71,300
Newell . . . . . . . . . . . . . . . . . . . . . . . . 5,800 267,162
PepsiCo . . . . . . . . . . . . . . . . . . . . . . . 8,700 256,106
Philip Morris . . . . . . . . . . . . . . . . . . . . 9,600 442,200
Procter & Gamble . . . . . . . . . . . . . . . . . . . 4,400 312,125
Ralston-Ralston Purina Group . . . . . . . . . . . . . 8,800 257,400
Sara Lee . . . . . . . . . . . . . . . . . . . . . . . 2,500 135,000
Unilever, N.V . . . . . . . . . . . . . . . . . . . . 3,500 214,375
Wrigley, (Wm.) Jr . . . . . . . . . . . . . . . . . . 1,100 83,531
______________
3,240,437
______________
Energy--4.5% Amoco . . . . . . . . . . . . . . . . . . . . . . . . 2,200 118,525
Ashland . . . . . . . . . . . . . . . . . . . . . . . 2,500 115,625
Coastal . . . . . . . . . . . . . . . . . . . . . . . 7,000 236,250
Columbia Energy Group . . . . . . . . . . . . . . . . 3,300 193,463
Diamond Offshore Drilling . . . . . . . . . . . . . . 3,100 80,600
El Paso Energy . . . . . . . . . . . . . . . . . . . . 2,500 81,094
Exxon . . . . . . . . . . . . . . . . . . . . . . . . 10,200 715,912
Mobil . . . . . . . . . . . . . . . . . . . . . . . . 6,400 486,000
Phillips Petroleum . . . . . . . . . . . . . . . . . . 6,200 279,775
Sun . . . . . . . . . . . . . . . . . . . . . . . . . 4,400 140,800
Texaco . . . . . . . . . . . . . . . . . . . . . . . . 4,400 275,825
______________
2,723,869
______________
Health Care--7.4% Abbott Laboratories . . . . . . . . . . . . . . . . . 15,900 690,656
American Home Products . . . . . . . . . . . . . . . . 3,100 162,363
Amgen . . . . . . . . . . . . . . . . . . . . . . . . (a) 5,100 385,369
Biomet . . . . . . . . . . . . . . . . . . . . . . . . 4,500 156,094
Bristol-Myers Squibb . . . . . . . . . . . . . . . . . 4,900 508,987
Guidant . . . . . . . . . . . . . . . . . . . . . . . 3,000 222,750
HEALTHSOUTH . . . . . . . . . . . . . . . . . . . . . (a) 11,100 117,244
Johnson & Johnson . . . . . . . . . . . . . . . . . . 7,700 602,525
Lilly (Eli) . . . . . . . . . . . . . . . . . . . . . 3,100 242,769
Schering-Plough . . . . . . . . . . . . . . . . . . . 6,800 704,225
Warner-Lambert . . . . . . . . . . . . . . . . . . . . 8,200 619,100
Wellpoint Health Networks . . . . . . . . . . . . . . (a) 300 16,819
______________
4,428,901
______________
Interest Sensitive--8.6% Allstate . . . . . . . . . . . . . . . . . . . . . . . 7,900 329,331
Ambac Financial Group . . . . . . . . . . . . . . . . 4,000 192,000
American Express . . . . . . . . . . . . . . . . . . . 3,000 232,875
BankAmerica . . . . . . . . . . . . . . . . . . . . . 2,900 174,363
DREYFUS LIFETIME PORTFOLIOS, INC., GROWTH PORTFOLIO
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1998
Common Stocks (continued) Shares Value
- ------------------------------------------------------- ______________ _______________
Interest Sensitive (continued) Bear Stearns . . . . . . . . . . . . . . . . . . . . . 5,900 $ 182,531
Chase Manhattan . . . . . . . . . . . . . . . . . . . 10,600 458,450
CIGNA . . . . . . . . . . . . . . . . . . . . . . . . 2,300 152,088
Citicorp . . . . . . . . . . . . . . . . . . . . . . . 600 55,763
Comerica . . . . . . . . . . . . . . . . . . . . . . . 5,300 290,506
Edwards (A.G.) . . . . . . . . . . . . . . . . . . . . 2,600 78,812
EXEL, Cl. A . . . . . . . . . . . . . . . . . . . . . 5,200 327,600
Fannie Mae . . . . . . . . . . . . . . . . . . . . . . 4,300 276,275
First Chicago NBD . . . . . . . . . . . . . . . . . . 5,100 349,350
Fleet Financial Group . . . . . . . . . . . . . . . . 5,000 367,187
Golden West Financial . . . . . . . . . . . . . . . . 1,900 155,444
Lehman Brothers Holdings . . . . . . . . . . . . . . . 1,400 39,550
MGIC Investment . . . . . . . . . . . . . . . . . . . 2,900 106,937
NationsBank . . . . . . . . . . . . . . . . . . . . . (a) 8,400 449,400
SLM Holding . . . . . . . . . . . . . . . . . . . . . 8,000 259,500
SunAmerica . . . . . . . . . . . . . . . . . . . . . . 5,200 317,200
SunTrust Banks . . . . . . . . . . . . . . . . . . . . 4,100 254,200
Travelers Group . . . . . . . . . . . . . . . . . . . (a) 3,900 146,250
______________
5,195,612
______________
Mining & Metals--.4% Aluminum Company of America . . . . . . . . . . . . . 2,200 156,200
USX-U.S. Steel Group . . . . . . . . . . . . . . . . . 3,600 85,950
______________
242,150
______________
Transportation--.7% AMR . . . . . . . . . . . . . . . . . . . . . . . . . (a) 3,200 177,400
Burlington Northern Santa Fe . . . . . . . . . . . . . 6,800 217,600
______________
395,000
______________
Utilities--5.7% AT&T . . . . . . . . . . . . . . . . . . . . . . . . . 7,900 461,656
AirTouch Communications . . . . . . . . . . . . . . . (a) 4,900 279,300
Ameritech . . . . . . . . . . . . . . . . . . . . . . 14,300 677,462
Bell Atlantic . . . . . . . . . . . . . . . . . . . . 4,400 213,125
BellSouth . . . . . . . . . . . . . . . . . . . . . . 7,600 571,900
Consolidated Edison . . . . . . . . . . . . . . . . . 5,100 265,838
FPL Group . . . . . . . . . . . . . . . . . . . . . . 5,700 397,219
FirstEnergy . . . . . . . . . . . . . . . . . . . . . 4,400 136,675
MCI WorldCom . . . . . . . . . . . . . . . . . . . . . (a) 6,700 327,462
Pinnacle West Capital . . . . . . . . . . . . . . . . 2,400 107,550
______________
3,438,187
______________
TOTAL COMMON STOCKS
(cost $28,962,506) . . . . . . . . . . . . . . . . $32,754,416
______________
______________
DREYFUS LIFETIME PORTFOLIOS, INC., GROWTH PORTFOLIO
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1998
Principal
Bonds and Notes--17.8% Amount Value
- ------------------------------------------------------- ______________ ______________
U.S. Treasury Notes: 6.75%, 4/30/2000 . . . . . . . . . . . . . . . . . . . $ 1,000,000 $ 1,034,390
6.25%, 8/31/2000 . . . . . . . . . . . . . . . . . . . 1,000,000 1,034,120
7.75%, 2/15/2001 . . . . . . . . . . . . . . . . . . . 1,350,000 1,451,344
6.25%, 4/30/2001 . . . . . . . . . . . . . . . . . . . 500,000 522,690
7.50%, 11/15/2001 . . . . . . . . . . . . . . . . . . 500,000 545,175
6.125%, 12/31/2001 . . . . . . . . . . . . . . . . . . 850,000 894,370
7.50%, 5/15/2002 . . . . . . . . . . . . . . . . . . . 750,000 827,535
6.375%, 8/15/2002 . . . . . . . . . . . . . . . . . . 1,150,000 1,230,822
6.25%, 2/15/2003 . . . . . . . . . . . . . . . . . . . 300,000 322,578
5.75%, 8/15/2003 . . . . . . . . . . . . . . . . . . . 500,000 530,630
7.25%, 5/15/2004 . . . . . . . . . . . . . . . . . . . 750,000 856,193
6.25%, 2/15/2007 . . . . . . . . . . . . . . . . . . . 600,000 673,872
5.625%, 5/15/2008 . . . . . . . . . . . . . . . . . . 700,000 766,640
____________
TOTAL BONDS AND NOTES
(cost $10,306,024) . . . . . . . . . . . . . . . . $10,690,359
____________
Short-Term Investments--27.7%
- -------------------------------------------------------
U.S. Treasury Bills: 4.90%, 10/8/1998 . . . . . . . . . . . . . . . . . . . $ 49,000 $ 48,959
4.94%, 10/15/1998 . . . . . . . . . . . . . . . . . . (b) 7,027,000 7,015,195
4.91%, 10/22/1998 . . . . . . . . . . . . . . . . . . 620,000 618,828
4.89%, 11/12/1998 . . . . . . . . . . . . . . . . . . 634,000 631,026
4.90%, 11/19/1998 . . . . . . . . . . . . . . . . . . 167,000 166,088
4.81%, 11/27/1998 . . . . . . . . . . . . . . . . . . 2,134,000 2,120,236
4.56%, 12/17/1998 . . . . . . . . . . . . . . . . . . (b) 4,512,000 4,471,753
4.51%, 12/24/1998 . . . . . . . . . . . . . . . . . . 1,638,000 1,621,898
____________
TOTAL SHORT-TERM INVESTMENTS
(cost $16,683,380) . . . . . . . . . . . . . . . . $16,693,983
____________
TOTAL INVESTMENTS (cost $55,951,910) . . . . . . . . . . . . . . . . . . . . . . . . . 99.9% $60,138,758
_______ ____________
CASH AND RECEIVABLES (NET) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1% $ 38,232
_______ ____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $60,176,990
_______ ____________
</TABLE>
<TABLE>
<CAPTION>
Notes to Statement of Investments:
- -----------------------------------------------------------------------------
(a) Non-income producing.
(b) Partially held by the custodian in a segregated account as collateral for
open financial futures positions.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS LIFETIME PORTFOLIOS, INC., GROWTH PORTFOLIO
- -----------------------------------------------------------------------------
STATEMENT OF FINANCIAL FUTURES SEPTEMBER 30, 1998
Unrealized
Market Value Appreciation/
Covered (Depreciation)
Financial Futures Purchased: Contracts by Contracts Expiration at 9/30/98
_________________________ ________ ___________ _________ ____________
<S> <C> <C> <C> <C>
Australian All Ordinaries. . . . . . . . . . . . . . . . 4 $ 153,496 December '98 $ (1,050)
CAC 40 . . . . . . . . . . . . . . . . . . . . . . . . . 30 842,007 December '98 (112,044)
Deutsche Akteinindex . . . . . . . . . . . . . . . . . . 5 1,289,846 December '98 (170,683)
Financial Times. . . . . . . . . . . . . . . . . . . . . 23 1,956,669 December '98 (89,525)
Hang Seng. . . . . . . . . . . . . . . . . . . . . . . . 7 349,110 October '98 (7,687)
Nikkei 300 . . . . . . . . . . . . . . . . . . . . . . . 85 1,312,729 December '98 (80,903)
Russell 2000 . . . . . . . . . . . . . . . . . . . . . . 48 8,766,000 December '98 104,570
Standard & Poor's 500. . . . . . . . . . . . . . . . . . 2 513,000 December '98 (3,566)
__________
$ (360,888)
</TABLE>
<TABLE>
<CAPTION>
__________
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS LIFETIME PORTFOLIOS, INC.
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES SEPTEMBER 30, 1998
Income Growth and Income Growth
Portfolio Portfolio Portfolio
____________ _____________ ____________
ASSETS:
Investments in securities--See Statement of Investments
<S> <C> <C> <C>
[cost--Note 5(b)] . . . . . . . . . . . . . . . . . . . . . . . . $52,322,259 $189,290,035 $60,138,758
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165,675 -- --
Receivable for investment securities sold . . . . . . . . . . . . . . -- 2,405,889 108,750
Receivable for shares of Common Stock subscribed . . . . . . . . . . 2,500 -- --
Dividends and interest receivable . . . . . . . . . . . . . . . . . . 383,206 1,532,053 196,818
Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . 22,354 40,153 29,582
____________ _____________ ____________
52,895,994 193,268,130 60,473,908
____________ _____________ ____________
LIABILITIES:
Due to The Dreyfus Corporation and affiliates . . . . . . . . . . . . 27,435 125,866 42,184
Due to Distributor . . . . . . . . . . . . . . . . . . . . . . . . . 2,450 812 758
Cash overdraft due to Custodian . . . . . . . . . . . . . . . . . . . -- 118,642 8,977
Payable for investment securities purchased . . . . . . . . . . . . . -- 2,312,717 79,115
Payable for futures variation margin--Note 5(a) . . . . . . . . . . . 385,875 297,238 140,018
Payable for shares of Common Stock redeemed . . . . . . . . . . . . . -- 2,605 2,637
Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . 35,969 36,780 23,229
____________ _____________ ____________
451,729 2,894,660 296,918
____________ _____________ ____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $52,444,265 $190,373,470 $60,176,990
____________ _____________ ____________
REPRESENTED BY:
Paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . $49,551,219 $171,148,087 $53,004,305
Accumulated undistributed investment income--net . . . . . . . . . . 1,621,177 5,777,243 1,252,028
Accumulated net realized gain (loss) on investments, forward
currency exchange contracts and foreign currency transactions . . 235,314 3,778,163 2,094,697
Accumulated net unrealized appreciation (depreciation) on
investments [including ($124,567), ($517,291) and ($360,888)
net unrealized (depreciation) on financial futures for
the Income Portfolio, the Growth and Income Portfolio and
the Growth Portfolio, respectively]--Note 5(b) . . . . . . . . . 1,036,555 9,669,977 3,825,960
____________ _____________ ____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $52,444,265 $190,373,470 $60,176,990
____________ _____________ ____________
NET ASSET VALUE PER SHARE
--------------------
Income Growth and Income Growth
Portfolio Portfolio Portfolio
____________ _____________ ____________
Restricted Class Shares
Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $40,582,382 $186,397,355 $56,431,015
Shares Outstanding . . . . . . . . . . . . . . . . . . . . . . . . . 2,945,465 11,321,069 3,550,520
NET ASSET VALUE PER SHARE. . . . . . . . . . . . . . . . . . . . . . . . $13.78 $16.46 $15.89
______ ______ ______
Investor Class Shares
Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $11,861,883 $3,976,115 $3,745,975
Shares Outstanding . . . . . . . . . . . . . . . . . . . . . . . . . 863,585 232,458 235,180
NET ASSET VALUE PER SHARE. . . . . . . . . . . . . . . . . . . . . . . . $13.74 $17.10 $15.93
______ ______ ______
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS LIFETIME PORTFOLIOS, INC.
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS YEAR ENDED SEPTEMBER 30, 1998
Income Growth and Income Growth
Portfolio Portfolio Portfolio
__________ __________ __________
INVESTMENT INCOME:
Income:
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,428,332 $ 8,451,034 $ 1,871,374
Cash dividends (net of $2,438 and $1,284 foreign taxes withheld
at source for the Growth and Income Portfolio and the
Growth Portfolio, respectively) . . . . . . . . . . . . . . . -- 733,358 385,593
____________ ____________ ____________
Total Income . . . . . . . . . . . . . . . . . . . . . . . . 2,428,332 9,184,392 2,256,967
____________ ____________ ____________
Expenses--Note 2(d):
Management fee--Note 4(a) . . . . . . . . . . . . . . . . . . . . $ 241,264 $ 1,403,976 $ 447,108
Shareholder servicing costs--Note 4(b) . . . . . . . . . . . . . 39,187 22,822 33,372
Auditing fees . . . . . . . . . . . . . . . . . . . . . . . . . . 35,352 25,378 16,845
Registration fees . . . . . . . . . . . . . . . . . . . . . . . . 34,700 34,701 32,399
Custodian fees--Note 4(b) . . . . . . . . . . . . . . . . . . . . 6,167 26,901 17,580
Prospectus and shareholders' reports . . . . . . . . . . . . . . 5,888 12,176 9,589
Directors' fees and expenses--Note 4(c) . . . . . . . . . . . . . 3,345 14,037 4,846
Legal fees . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,283 24,439 7,195
Loan commitment fees--Note 3 . . . . . . . . . . . . . . . . . . 215 1,131 372
Miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . . 14,789 22,170 6,284
____________ ____________ ____________
Total Expenses . . . . . . . . . . . . . . . . . . . . . . . 383,190 1,587,731 575,590
____________ ____________ ____________
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . 2,045,142 7,596,661 1,681,377
____________ ____________ ____________
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 5:
Net realized gain (loss) on investments . . . . . . . . . . . . . . . 70,844 7,218,241 3,955,027
Net realized gain (loss) on forward currency exchange contracts
Short transactions . . . . . . . . . . . . . . . . . . . . . . . -- 4,296 3, 974
Net realized gain (loss) on financial futures . . . . . . . . . . . . 295,981 (2,752,512) (1,460,745)
____________ ____________ ____________
Net Realized Gain (Loss) . . . . . . . . . . . . . . . . . . 366,825 4,470,025 2,498,256
____________ ____________ ____________
Net unrealized appreciation (depreciation) on investments
[including ($249,207), ($1,154,257) and ($706,538)
net unrealized (depreciation) on financial futures for the
Income Portfolio, the Growth and Income Portfolio and
the Growth Portfolio, respectively] . . . . . . . . . . . . . . . 955,546 (872,552) (2,255,918)
____________ ____________ ____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS . . . . . . . . . 1,322,371 3,597,473 242,338
____________ ____________ ____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS. . . . . . . . . . $ 3,367,513 $11,194,134 $ 1,923,715
____________ ____________ ____________
</TABLE>
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS LIFETIME PORTFOLIOS, INC., INCOME PORTFOLIO
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
September 30, 1998 September 30, 1997*
______________ _______________
OPERATIONS:
<S> <C> <C>
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,045,142 $ 1,577,563
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . 366,825 1,684,862
Net unrealized appreciation (depreciation) on investments . . . . . . . . 955,546 203,272
____________ ____________
Net Increase (Decrease) in Net Assets Resulting from Operations . 3,367,513 3,465,697
____________ ____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:
Restricted Class shares . . . . . . . . . . . . . . . . . . . . . . . (1,195,123) (683,757)
Investor Class shares . . . . . . . . . . . . . . . . . . . . . . . . (503,416) (402,914)
Net realized gain on investments:
Restricted Class shares . . . . . . . . . . . . . . . . . . . . . . . (1,162,380) (452,331)
Investor Class shares . . . . . . . . . . . . . . . . . . . . . . . . (510,607) (279,441)
____________ ____________
Total Dividends . . . . . . . . . . . . . . . . . . . . . . . . . (3,371,526) (1,818,443)
____________ ____________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold:
Restricted Class shares . . . . . . . . . . . . . . . . . . . . . . . 26,320,416 14,554,251
Investor Class shares . . . . . . . . . . . . . . . . . . . . . . . . 1,337,588 285,941
Dividends reinvested:
Restricted Class shares . . . . . . . . . . . . . . . . . . . . . . . 2,347,119 1,128,662
Investor Class shares . . . . . . . . . . . . . . . . . . . . . . . . 1,013,674 682,355
Cost of shares redeemed:
Restricted Class shares . . . . . . . . . . . . . . . . . . . . . . . (10,884,363) (7,019,957)
Investor Class shares . . . . . . . . . . . . . . . . . . . . . . . . (549,851) (4,952)
____________ ____________
Increase (Decrease) in Net Assets from Capital Stock Transactions . 19,584,583 9,626,300
____________ ____________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . 19,580,570 11,273,554
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,863,695 21,590,141
____________ ____________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $52,444,265 $32,863,695
____________ ____________
UNDISTRIBUTED INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . $ 1,621,177 $ 1,234,286
____________ ____________
CAPITAL SHARE TRANSACTIONS:
Restricted Class Shares Shares Shares*
____________ ____________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,946,584 1,084,972
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . 182,513 88,731
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (802,212) (515,657)
____________ ____________
Net Increase (Decrease) in Shares Outstanding . . . . . . . . . . 1,326,885 658,046
____________ ____________
Investor Class Shares
__________________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101,421 20,560
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . 78,947 53,686
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (40,536) (353)
____________ ____________
Net Increase (Decrease) in Shares Outstanding . . . . . . . . . . 139,832 73,893
____________ ____________
- -----------
* Effective August 7, 1997, Retail shares were redesignated as Restricted Class
shares and Institutional shares were redesignated as Investor Class shares.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS LIFETIME PORTFOLIOS, INC., GROWTH AND INCOME PORTFOLIO
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Year Ended Year Ended
September 30, 1998 September 30, 1997*
______________ _______________
OPERATIONS:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,596,661 $ 5,236,005
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . 4,470,025 21,316,664
Net unrealized appreciation (depreciation) on investments . . . . . . . . (872,552) 8,099,227
_____________ _____________
Net Increase (Decrease) in Net Assets Resulting from Operations . 11,194,134 34,651,896
_____________ _____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:
Restricted Class shares . . . . . . . . . . . . . . . . . . . . . . . (5,849,219) (2,784,722)
Investor Class shares . . . . . . . . . . . . . . . . . . . . . . . . (32,948) --
Net realized gain on investments:
Restricted Class shares . . . . . . . . . . . . . . . . . . . . . . . (21,725,669) (2,498,058)
Investor Class shares . . . . . . . . . . . . . . . . . . . . . . . . (126,391) (2,967)
_____________ _____________
Total Dividends . . . . . . . . . . . . . . . . . . . . . . . . . (27,734,227) (5,285,747)
_____________ _____________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold:
Restricted Class shares . . . . . . . . . . . . . . . . . . . . . . . 90,798,976 70,834,047
Investor Class shares . . . . . . . . . . . . . . . . . . . . . . . . 3,980,556 576,089
Dividends reinvested:
Restricted Class shares . . . . . . . . . . . . . . . . . . . . . . . 27,548,779 5,281,509
Investor Class shares . . . . . . . . . . . . . . . . . . . . . . . . 136,621 2,791
Cost of shares redeemed:
Restricted Class shares . . . . . . . . . . . . . . . . . . . . . . . (88,118,244) (57,422,338)
Investor Class shares . . . . . . . . . . . . . . . . . . . . . . . . (821,513) (86,232)
_____________ _____________
Increase (Decrease) in Net Assets from Capital Stock Transactions . 33,525,175 19,185,866
_____________ _____________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . 16,985,082 48,552,015
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . 173,388,388 124,836,373
_____________ _____________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $190,373,470 $173,388,388
============= =============
UNDISTRIBUTED INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . $ 5,777,243 $ 4,000,039
_____________ _____________
CAPITAL SHARE TRANSACTIONS:
Restricted Class Shares Shares Shares*
_____________ _____________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,567,273 4,256,585
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . 1,762,559 345,875
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,379,862) (3,358,250)
_____________ _____________
Net Increase (Decrease) in Shares Outstanding . . . . . . . . . . 1,949,970 1,244,210
============= =============
Investor Class Shares
__________________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236,425 30,519
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . 8,397 177
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (48,209) (5,235)
_____________ _____________
Net Increase (Decrease) in Shares Outstanding . . . . . . . . . . 196,613 25,461
============= =============
- -----------
* Effective August 7, 1997, Retail shares were redesignated as Restricted Class
shares and Institutional shares were redesignated as Investor Class shares.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS LIFETIME PORTFOLIOS, INC., GROWTH PORTFOLIO
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Year Ended Year Ended
September 30, 1998 September 30, 1997*
______________ _______________
OPERATIONS:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,681,377 $ 1,204,683
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . 2,498,256 11,600,750
Net unrealized appreciation (depreciation) on investments . . . . . . . . (2,255,918) 1,930,461
_____________ _____________
Net Increase (Decrease) in Net Assets Resulting from Operations . 1,923,715 14,735,894
_____________ _____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:
Restricted Class shares . . . . . . . . . . . . . . . . . . . . . . . (1,250,906) (560,123)
Investor Class shares . . . . . . . . . . . . . . . . . . . . . . . . (138,717) (222,676)
Net realized gain on investments:
Restricted Class shares . . . . . . . . . . . . . . . . . . . . . . . (10,416,640) (2,126,569)
Investor Class shares . . . . . . . . . . . . . . . . . . . . . . . . (1,381,134) (978,027)
_____________ _____________
Total Dividends . . . . . . . . . . . . . . . . . . . . . . . . . (13,187,397) (3,887,395)
_____________ _____________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold:
Restricted Class shares . . . . . . . . . . . . . . . . . . . . . . . 31,959,042 26,560,356
Investor Class shares . . . . . . . . . . . . . . . . . . . . . . . . 2,944,441 753,257
Dividends reinvested:
Restricted Class shares . . . . . . . . . . . . . . . . . . . . . . . 11,662,994 2,685,803
Investor Class shares . . . . . . . . . . . . . . . . . . . . . . . . 1,519,851 1,200,579
Cost of shares redeemed:
Restricted Class shares . . . . . . . . . . . . . . . . . . . . . . . (23,893,043) (18,995,072)
Investor Class shares . . . . . . . . . . . . . . . . . . . . . . . . (8,374,798) (10,031,917)
_____________ _____________
Increase (Decrease) in Net Assets from Capital Stock Transactions . 15,818,487 2,173,006
_____________ _____________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . 4,554,805 13,021,505
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . 55,622,185 42,600,680
_____________ _____________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 60,176,990 $ 55,622,185
_____________ _____________
_____________ _____________
UNDISTRIBUTED INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . $ 1,252,028 $ 931,029
_____________ _____________
CAPITAL SHARE TRANSACTIONS:
Restricted Class Shares Shares Shares*
_____________ _____________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,910,064 1,467,413
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . 755,375 168,919
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,403,323) (1,044,750)
_____________ _____________
Net Increase (Decrease) in Shares Outstanding . . . . . . . . . . 1,262,116 591,582
============= =============
Investor Class Shares
__________________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183,691 38,429
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . 98,055 75,413
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (469,015) (563,616)
_____________ _____________
Net Increase (Decrease) in Shares Outstanding . . . . . . . . . . (187,269) (449,774)
============== =============
</TABLE>
- -----------
* Effective August 7, 1997, Retail shares were redesignated as Restricted Class
shares and Institutional shares were redesignated as Investor Class shares.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS LIFETIME PORTFOLIOS, INC., INCOME PORTFOLIO
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
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 period indicated. This information has been
derived from the Portfolios' financial statements.
Restricted Class Shares Investor Class Shares
____________________________________ _____________________________________
Year Ended September 30, Year Ended September 30,
____________________________________ __________________________________
PER SHARE DATA: 1998 1997(1) 1996(2) 1995(3) 1998 1997(1) 1996(2) 1995(3)
_______ _______ _______ ______ ______ _______ ______ ______
Net asset value, beginning of
<S> <C> <C> <C> <C> <C> <C> <C> <C>
period . . . . . . . . . . $14.04 $13.42 $13.52 $12.50 $14.01 $13.39 $13.51 $12.50
______ _______ _______ ______ ______ ______ ______ ______
Investment Operations:
Investment income--net . . . . . .61 .71 .64 .40 .65 .72 .73 .39
Net realized and unrealized gain
(loss) on investments . . . . .57 .99 .31 .62 .49 .95 .18 .62
______ _______ _______ ______ ______ ______ ______ ______
Total from Investment Operations . 1.18 1.70 .95 1.02 1.14 1.67 .91 1.01
______ _______ _______ ______ ______ ______ ______ ______
Distributions:
Dividends from investment
income--net . . . . . . . . . (.73) (.65) (.62) -- (.70) (.62) (.60) --
Dividends from net realized gain
on investments . . . . . . . (.71) (.43) (.43) -- (.71) (.43) (.43) --
______ _______ _______ ______ ______ ______ ______ ______
Total Distributions . . . . . . . (1.44) (1.08) (1.05) -- (1.41) (1.05) (1.03) --
______ _______ _______ ______ ______ ______ ______ ______
Net asset value, end of period . $13.78 $14.04 $13.42 $13.52 $13.74 $14.01 $13.39 $13.51
______ _______ _______ ______ ______ ______ ______ ______
TOTAL INVESTMENT RETURN. . . . . . . 9.14% 13.50% 7.30% 8.24%(4) 8.92% 13.19% 7.07% 8.08%(4)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average
net assets . . . . . . . . . .88% .68% .60% .30%(4) 1.13% .97% .85% .43%(4)
Ratio of net investment income to
average net assets . . . . . 5.15% 5.87% 5.75% 3.08%(4) 4.92% 5.52% 5.50% 2.95%(4)
Decrease reflected in above expense
ratios due to undertakings by
the Manager . . . . . . . . . -- .14% .61% .26%(4) -- .15% .61% .26%(4)
Portfolio Turnover Rate . . . . . 64.58% 72.08% 32.95% 5.66%(4) 64.58% 72.08% 32.95% 5.66%(4)
Net Assets, end of period
(000's Omitted) . . . . . . . $40,582 $22,727 $12,889 $8,141 $11,862 $10,136 $8,701 $8,122
- ------------
(1) Effective August 7, 1997, Retail shares were redesignated as Restricted
Class shares and Institutional shares were redesignated as Investor Class
shares.
(2) Effective July 15, 1996, Class R shares were redesignated as Retail shares
and Investor Class shares were redesignated as Institutional shares.
(3) From March 31, 1995 (commencement of operations) to September 30, 1995.
(4) Not annualized.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS LIFETIME PORTFOLIOS, INC., GROWTH AND INCOME PORTFOLIO
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
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 period indicated. This information has been
derived from the Portfolios' financial statements.
Restricted Class Shares Investor Class Shares
____________________________________ _____________________________________
Year Ended September 30, Year Ended September 30,
____________________________________ __________________________________
PER SHARE DATA: 1998 1997(1) 1996(2) 1995(3) 1998 1997(1) 1996(2) 1995(3)
_______ _______ _______ ______ ______ _______ ______ ______
Net asset value, beginning of
<S> <C> <C> <C> <C> <C> <C> <C> <C>
period . . . . . . . . . . $18.43 $15.34 $14.31 $12.50 $19.05 $15.43 $14.29 $12.50
_______ _______ _______ ______ ______ _______ ______ ______
Investment Operations:
Investment income--net . . . . . .70 .58 .33 .27 .72(4) .57(4) .90(4) .27
Net realized and unrealized gain
(loss) on investments . . . . .30 3.16 1.60 1.54 .28 3.36 1.12 1.52
_______ _______ _______ ______ ______ _______ ______ ______
Total from Investment Operations . 1.00 3.74 1.93 1.81 1.00 3.93 2.02 1.79
_______ _______ _______ ______ ______ _______ ______ ______
Distributions:
Dividends from investment
income--net . . . . . . . . . (.63) (.34) (.42) -- (.61) -- (.40) --
Dividends from net realized gain
on investments . . . . . . . (2.34) (.31) (.48) -- (2.34) (.31) (.48) --
_______ _______ _______ ______ ______ _______ ______ ______
Total Distributions . . . . . . . (2.97) (.65) (.90) -- (2.95) (.31) (.88) --
_______ _______ _______ ______ ______ _______ ______ ______
Net asset value, end of period . $16.46 $18.43 $15.34 $14.31 $17.10 $19.05 $15.43 $14.29
====== ====== ====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN. . . . . . . 6.28% 25.22% 14.17% 14.48%(5) 6.04% 25.85% 14.84% 14.32%(5)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average
net assets . . . . . . . . . .84% .78% .75% .38%(5) 1.08% 1.00% 1.00% .51%(5)
Ratio of net investment income to
average net assets . . . . . 4.06% 3.52% 3.60% 2.10%(5) 3.81% 3.58% 3.35% 1.98%(5)
Decrease reflected in above expense
ratios due to undertakings by
the Manager . . . . . . . . . -- .06% .39% .33%(5) -- .05% .39% .33%(5)
Portfolio Turnover Rate . . . . . 76.78% 107.85% 122.52% 33.55%(5) 76.78% 107.85% 122.52% 33.55%(5)
Net Assets, end of period
(000's Omitted) . . . . . . . $186,397 $172,705 $124,677 $9,248 $3,976 $683 $160 $8,602
- ------------
(1) Effective August 7, 1997, Retail shares were redesignated as Restricted
Class shares and Institutional shares were redesignated as Investor Class
shares.
(2) Effective July 15, 1996, Class R shares were redesignated as Retail shares
and Investor Class shares were redesignated as Institutional shares.
(3) From March 31, 1995 (commencement of operations) to September 30, 1995.
(4) Based on average shares outstanding at each month end.
(5) Not annualized.
</TABLE>
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
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 period indicated. This information has been
derived from the Portfolios' financial statements.
Restricted Class Shares Investor Class Shares
____________________________________ _____________________________________
Year Ended September 30, Year Ended September 30,
____________________________________ __________________________________
PER SHARE DATA: 1998 1997(1) 1996(2) 1995(3) 1998 1997(1) 1996(2) 1995(3)
_______ _______ _______ ______ ______ _______ ______ ______
Net asset value, beginning of
<S> <C> <C> <C> <C> <C> <C> <C> <C>
period . . . . . . . . . . $20.52 $16.59 $14.84 $12.50 $20.50 $16.58 $14.82 $12.50
_______ _______ _______ ______ ______ _______ ______ ______
Investment Operations:
Investment income--net . . . . . .52 .41 .28 .21 .44(4) .62 .32 .19
Net realized and unrealized gain
(loss) on investments . . . . (.02) 4.94 2.48 2.13 .03 4.68 2.42 2.13
_______ _______ _______ ______ ______ _______ ______ ______
Total from Investment Operations . .50 5.35 2.76 2.34 .47 5.30 2.74 2.32
_______ _______ _______ ______ ______ _______ ______ ______
Distributions:
Dividends from investment
income--net . . . . . . . . . (.55) (.30) (.31) -- (.46) (.26) (.28) --
Dividends from net realized gain
on investments . . . . . . . (4.58) (1.12) (.70) -- (4.58) (1.12) (.70) --
_______ _______ _______ ______ ______ _______ ______ ______
Total Distributions . . . . . . . (5.13) (1.42) (1.01) -- (5.04) (1.38) (.98) --
_______ _______ _______ ______ ______ _______ ______ ______
Net asset value, end of period . $15.89 $20.52 $16.59 $14.84 $15.93 $20.50 $16.58 $14.82
====== ====== ====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN. . . . . . . 3.17% 34.70% 19.73% 18.72%(5) 2.97% 34.32% 19.58% 18.56%(5)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average
net assets . . . . . . . . . .94% .83% .75% .38%(5) 1.18% 1.06% 1.00% .51%(5)
Ratio of net investment income to
average net assets . . . . . 2.84% 2.38% 2.38% 1.51%(5) 2.65% 2.05% 2.08% 1.39%(5)
Decrease reflected in above expense
ratios due to undertakings by
the Manager . . . . . . . . . -- .20% .53% .26%(5) -- .27% .53% .26%(5)
Portfolio Turnover Rate . . . . . 89.23% 118.49% 77.83% 52.86%(5) 89.23% 118.49% 77.83% 52.86%(5)
Net Assets, end of period
(000's Omitted) . . . . . . . $56,431 $46,960 $28,143 $11,898 $3,746 $8,662 $14,458 $11,939
- ------------
(1) Effective August 7, 1997, Retail shares were redesignated as Restricted
Class shares and Institutional shares were redesignated as Investor Class
shares.
(2) Effective July 15, 1996, Class R shares were redesignated as Retail shares
and Investor Class shares were redesignated as Institutional shares.
(3) From March 31, 1995 (commencement of operations) to September 30, 1995.
(4) Based on average shares outstanding at each month end.
(5) Not annualized.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
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 (the "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 series. The Dreyfus Corporation (the
"Manager") serves as each Portfolio' s investment adviser. The Manager is a
direct subsidiary of Mellon Bank, N.A. ("Mellon"), which is a wholly-owned
subsidiary of Mellon Bank Corporation. Mellon Equity Associates ("Mellon
Equity"), an indirect wholly-owned subsidiary of Mellon Bank Corporation, serves
as each Portfolio's sub-investment adviser.
As of September 30, 1998, APT Holdings Corporation, an indirect subsidiary of
Mellon Bank Corporation, held the following shares:
Income Portfolio
___________
Investor Class . . . . .778,816 Restricted Class . . . . . . .783,071
Premier Mutual Fund Services, Inc. (the "Distributor") is the distributor of
the Fund' s shares. The Fund is authorized to issue 50 million shares of $.001
par value Common Stock in each of the following classes of shares: Restricted
and Investor. Investor Class shares are offered to any investor and Restricted
Class shares are offered only to clients of certain banks, securities brokers or
dealers and other financial institutions (collectively, Service Agents) that
have entered into selling agreements with the Distributor. Other differences
between the 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: 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 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.
DREYFUS LIFETIME PORTFOLIOS, INC.
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 and 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. Under the terms of the custody agreement, each Portfolio receives
net earnings credits based on available cash balances left on deposit. During
the period ended September 30, 1998, each portfolio received the following:
Income Portfolio . . . . . . . . . . . . . . . . . . . . . . . . $ 498
Growth and Income Portfolio . . . . . . . . . . . . . . . . . . 1,232
Growth Portfolio . . . . . . . . . . . . . . . . . . . . . . . . 282
Income earned under this arrangement is included in interest income.
(D) EXPENSES: Expenses directly attributable to each Portfolio are charged to
that Portfolio' s operations; expenses which are applicable to all series are
allocated among them on a pro rata basis.
(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 of 1986, as amended (the "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 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.
During the period ended September 30, 1998, each Portfolio reclassified the
following amounts from paid-in capital to investment income-net. Net assets were
not affected by these reclassifications.
Income Portfolio . . . . . . . . . . . . . . . $40,288
Growth and Income Portfolio . . . . . . . . . 62,710
Growth Portfolio . . . . . . . . . . . . . . . 29,245
NOTE 3--BANK LINE OF CREDIT:
The Fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility ("Facility") to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the Fund has agreed to pay commitment fees on its pro rata portion of
the Facility. Interest is charged to the Fund at rates based on prevailing
market rates in effect at the time of borrowings. During the period ended
September 30, 1998, the Fund did not borrow under the Facility.
DREYFUS LIFETIME PORTFOLIOS, INC.
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 4--MANAGEMENT FEE, SUB-INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH
AFFILIATES:
(A) Pursuant to a management 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.
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:
Annual Fee as a Percentage of
Total Fund Net Assets Average Daily Net Assets of each Portfolio
___________________ _____________________________________
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%
(B) 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 each
Portfolio' s Investor Class 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 (a
securities dealer, financial institution, or other industry professional) in
respect of these services. The Distributor determines the amounts to be paid to
Service Agents.
During the period ended September 30, 1998, each Portfolio was charged the
following pursuant to the Shareholder Services Plan:
Income Portfolio . . . . . . . . . . . . . . . . . . . . . . . . $27,990
Growth and Income Portfolio . . . . . . . . . . . . . . . . . . 7,498
Growth Portfolio . . . . . . . . . . . . . . . . . . . . . . . . 14,741
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, 1998, each Portfolio was charged the following
pursuant to the transfer agency agreement:
Income Portfolio . . . . . . . . . . . . . . . . . . . . . . . . $2,340
Growth and Income Portfolio . . . . . . . . . . . . . . . . . . 3,173
Growth Portfolio . . . . . . . . . . . . . . . . . . . . . . . . 4,332
The Fund compensates Mellon under a custody agreement to provide custodial
services for each Portfolio. During the period ended September 30, 1998, each
Portfolio was charged the following pursuant to the custody agreement:
Income Portfolio . . . . . . . . . . . . . . . . . . . . . . . . $ 6,167
Growth and Income Portfolio . . . . . . . . . . . . . . . . . . 26,901
Growth Portfolio . . . . . . . . . . . . . . . . . . . . . . . . 17,580
(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.
DREYFUS LIFETIME PORTFOLIOS, INC.
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 5--SECURITIES TRANSACTIONS:
(A) The following summarizes the aggregate amount of purchases and sales of
investment securities, excluding short-term securities, financial futures and
forward currency exchange contracts during the period ended September 30, 1998:
Purchases Sales
______________ ______________
Income Portfolio. . . . . . . . . . $ 28,303,690 $ 17,086,183
Growth and Income Portfolio . . . . 127,541,685 121,946,589
Growth Portfolio. . . . . . . . . . 38,970,738 38,925,129
The Fund enters into forward currency exchange contracts in order to hedge its
exposure to changes in foreign currency exchange rates on its foreign portfolio
holdings. When executing forward currency exchange contracts, the Fund is
obligated to buy or sell a foreign currency at a specified rate on a certain
date in the future. With respect to sales of forward currency exchange
contracts, the Fund would incur a loss if the value of the contract increases
between the date the forward contract is opened and the date the forward
contract is closed. The Fund realizes a gain if the value of the contract
decreases between those dates. With respect to purchases of forward currency
exchange contracts, the Fund would incur a loss if the value of the contract
decreases between the date the forward contract is opened and the date the
forward contract is closed. The Fund realizes a gain if the value of the
contract increases between those dates. The Fund is also exposed to credit risk
associated with counter party nonperformance on these forward currency exchange
contracts which is typically limited to the unrealized gain on each open
contract. At September 30, 1998, there were no open forward currency exchange
contracts.
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.
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, 1998 are set
forth in the Statements of Financial Futures.
(B) The following summarizes accumulated net unrealized appreciation on
investments and financial futures for each Portfolio at September 30, 1998:
<TABLE>
<CAPTION>
Gross Gross
Appreciation (Depreciation) Net
___________ __________ ___________
<S> <C> <C> <C>
Income Portfolio . . . . . . . . . . $ 1,161,144 $ (124,589) $1,036,555
Growth and Income Portfolio . . . . . 13,054,522 (3,384,545) 9,669,977
Growth Portfolio . . . . . . . . . . 5,618,623 (1,792,663) 3,825,960
</TABLE>
At September 30, 1998, 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, 1998 was as follows:
Income Portfolio . . . . . . . . . . . . . . . . . . . . . . $ 51,161,137
Growth and Income Portfolio . . . . . . . . . . . . . . . . 179,102,767
Growth Portfolio . . . . . . . . . . . . . . . . . . . . . . 55,951,910
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, 1998, 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 and financial highlights. Our procedures included verification by
examination of securities held by the custodian as of September 30, 1998 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 Dreyfus LifeTime Portfolios, Inc. at
September 30, 1998, 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.
New York, New York
November 5, 1998
<TABLE>
<CAPTION>
DREYFUS LIFETIME PORTFOLIOS, INC.
- -----------------------------------------------------------------------------
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal and State (where applicable) tax law, Dreyfus
LifeTime Portfolios, Inc. (Income Portfolio, Growth and Income Portfolio and
Growth Portfolio) hereby make the following designations of dividends and
distributions paid during the fiscal year ended September 30, 1998:
Long-Term
Capital Gains Qualifying Interest From
Distribution Payable Ordinary U.S. Government
Per Share Date Dividends Obligations
___________ _________ ______________ ______________
<S> <C> <C> <C> <C>
Income Portfolio. . . . . . . . . . . . . . . . $ .45 12/16/97 Not Applicable 67.037%
Growth and Income Portfolio . . . . . . . . . . $1.02 12/16/97 4.030% Not Applicable
Growth Portfolio. . . . . . . . . . . . . . . . $2.94 12/16/97 4.362% Not Applicable
</TABLE>
The percentage of qualifying ordinary dividends shown qualify for the
corporate dividends received deduction. Shareholders will receive notification
in January 1999 of the percentage applicable to the preparation of their 1998
income tax returns.
The percentage shown for interest from U.S. Government Obligations represents
the percentage of ordinary dividends attributable to interest income from direct
obligations of the United States. Such portion of the dividend is currently
exempt from taxation for individual income tax purposes in most states,
including New York, California and the District of Columbia.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE INVESTOR
SHARES AND RESTRICTED 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
PORTFOLIOS PORTFOLIOS STANDARD
-GROWTH AND -GROWTH AND & POOR'S 500
INCOME INCOME COMPOSITE
PORTFOLIO PORTFOLIO STOCK CUSTOMIZED
PERIOD (INVESTOR (RESTRICTED PRICE BLENDED
SHARES) SHARES) INDEX * INDEX **
3/31/95 10,000 10,000 10,000 10,000
9/30/95 11,432 11,448 11,823 11,241
9/30/96 13,128 13,070 14,226 12,619
9/30/97 16,521 16,366 19,976 15,520
9/30/98 17,519 17,394 21,791 16,533
*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 INVESTOR
SHARES AND RESTRICTED 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
PORTFOLIOS PORTFOLIOS INTERMEDIATE
-INCOME -INCOME GOVERNMENT /
PORTFOLIO PORTFOLIO CORPORATE CUSTOMIZED
(INVESTOR (RESTRICTED BOND BLENDED
PERIOD SHARES) SHARES) INDEX * INDEX **
3/31/95 10,000 10,000 10,000 10,000
9/30/95 10,808 10,824 10,673 10,893
9/30/96 11,573 11,615 11,221 11,824
9/30/97 13,099 13,183 12,140 13,615
9/30/98 14,268 14,388 13,407 14,921
*Source: Lehman Brothers
**Source: Lehman Brothers, Lipper Analytical Services, Inc., and
The Wall Street Journal
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE INVESTOR
SHARES AND RESTRICTED 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
LIFETIME LIFETIME STANDARD
PORTFOLIOS PORTFOLIOS & POOR'S 500
-GROWTH -GROWTH COMPOSITE
PORTFOLIO PORTFOLIO STOCK CUSTOMIZED
PERIOD (INVESTOR (RESTRICTED PRICE BLENDED
SHARES) SHARES) INDEX * INDEX **
3/31/95 10,000 10,000 10,000 10,000
9/30/95 11,856 11,872 11,823 11,545
9/30/96 14,177 14,214 14,226 13,399
9/30/97 19,043 19,146 19,976 17,551
9/30/98 19,610 19,752 21,791 18,169
*Source: Lipper Analytical Services, Inc.
**Source: Lipper Analytical Services, Inc., Lehman Brothers,
Morgan Stanley & Co. Incorporated and J.P. Morgan & Co. Incorporated
