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Subject:  Re: What do I do now? Date:  3/26/2000  7:32 PM
Author:  rjm1 Number:  3187 of 20632

I'm approaching 62, and plan on working until I'm 67. My 401K is invested sort of equally over an S&P 500 Index
Fund, an International Index Fund, a Small Cap Index Fund, and a General Dynamics Stock Fund (I work for Electric
Boat, a GD company). I'm really happy with the way my 401K is earning money, but I'm wondering if I should "protect"
some of it by putting it in one of the "safer" (read duller) funds. My other choices are a Balanced Fund, a Fixed Income
Fund, and a Bond Index Fund, none of which is really earning squat. If I should move some of the money, when should it
move? Where should it move? Am I being too greedy to leave it where it is? Should some of the company stock be
spread into the 3 index funds I now hold? Thanks for any help you can give me.

So far so good. You are asking the $64 dollar question.

I think most of us would postpone the decision for another year or two. Guess that is greed.

Maybe put all new money into fixed income type securities to start to building a "cash" fund to cover several years of living expense.

Remember, bond funds have an interest rate risk so you should avoid the funds. You want securities that will mature when you need them. From your 401k choices you might want to build the cash fund outside of the 401k.

I think I would waite two more years, but if the market tanks next year my answer maybe wrong.
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