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- OK, Popeye, and what happens if you are short on cash and can't make the loan payment? What if you make a bad investment and loose your shirt or at least a sleeve or two? Just because you invest in a REIT or dividend stock/fund does not mean you will make money. If you do make money, your gains will all be taxed in the current year instead of being deferred to when you are in a lower tax bracket. The value of your 401k is in DCA investing, and when you reduce your assets for market speculation, that money is not working towards your retirement.

This is a stylistic concern that is mitigated by my situation. I'm 28 and a slightly more aggressive investor. Short on cash isn't an issue since it's money I've NEVER tapped into it and don't even know it's there. I could turn it off and see my paycheck grow significantly, but I've managed to get by without having the money on hand to burn a hole in my pocket. My loan is about 10% of my stock portfolio and about 30% of my 401k so I'm never over-extended. My companies, all good companies, are listed below w/ my port weighting. Speculation isn't a word I would ever use to describe a long-time TMF member's strategy. Some are bulls and some are bears; I'm generally a wimp and like to think my portfolio is very well balanced and slightly conservative for my age. Cash in my hands is working towards my retirement, cash used to pay the salary of a 401k fund manager is forever lost and never to compound for our long-term benefit. I hate indexes too, too watered down...
BTW: DCA is not only a great long-term investment strategy for stocks and 401k but also as a great way to defer taxes on a stock account.

Own these:
GE - great DCA stock - 20%
KO - most recognized brand in the world, should be worth a bunch in 2040 when I'll retire - 20%
MO - My "high-risk". Great yield, under-valued, causes heartburn - 10%
NXL - My all-time best performer. Great management, great strategy, local presence - 25%
ORCL - Actively traded. I go from 0-25% w/ the rest in cash. 15% of my port, 80% of my research time.

Keeping my eye on these:
HPT - great yield for those who caught it early. I sold out due to over-valuation
CVX - Oil makes me nervous. Good yield, bad long-term prospects
FNM - soon to drop off the list
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