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Author: Goofyhoofy Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 78297  
Subject: Re: Poll: Retirement AA going forward Date: 12/30/2010 5:46 PM
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The first thing that occurs to me is: is 10% enough for you to live for two years without touching anything else? Because another meltdown might mean cashing in some bonds - or stocks - at an inopportune time. What you want to avoid is having to do something at a moment when it is most inconvenient to do so.

Of course there's no guarantee that "two" years will be enough, nor is there any guarantee that we'll have another meltdown on the scale of this last one.

But you are asking for many things, and you need to prioritize them. I would counsel 1) enough cash to last a bad downturn, 2) enough equities and/or high paying bonds to outpace inflation, 3) enough bonds to provide stability, and 4) enough anything to have something for an inheritance.

Yes, I would surely put #4 last, but YMMV.
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