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Subject:  Re: 5 Year Date:  4/27/2000  11:52 PM
Author:  intercst Number:  3752 of 20640

jangle1 asks,

I've let this lay dorment for a while now, but I just read the FoolU Q&A on assett allocation and there the advise is to have 3 to 6 months of cash and the rest 100% in stocks. This seems to be 180 degrees from your position of 5 years of cash. Any response to the FoolU Q&A?

The 3 to 6 months of cash is an "emergency fund" for folks that are working.

The 5 years of cash is for retired folks whose only income is what they "harvest" from their investment portfolios.

An asset allocation of 100% stock (plus the 3 to 6 month emergency fund) is appropriate while you're saving FOR retirement. Once retired, many folks feel comfortable having a larger cash/fixed income allocation.

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