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Retirement Discussions / Retired Fools
|Subject: Re: 5 Year||Date: 4/27/2000 11:52 PM|
|Author: intercst||Number: 3752 of 19513|
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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