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Subject:  Re: What Should We do? Date:  4/25/2001  9:44 PM
Author:  JLC Number:  29330 of 88528

<<<What do you guys think? I have been investing for a few years and I would like to think it was skill and luck that got me to $300k, however it scares me to think that I could manage a portfolio of $1.3 million without professional help and so much on the line.>>>

I have a low opinion of annuities, primarily because I think I can do better.

Next question, did you feel comfortable managing your investment? If yes, there is very little difference between managing 300k and 1M. If you were able to follow the plan for 300k in good and bad times, it shouldn't be much different with a larger sum. Think of the movie "Hoosiers", when the small town team made it to the state finals and showed up in the hugh city gym. The coach had them measure the heigth of the basket, and the distance of the foul line. Both the same as their gym (and any other gym). Your investment strategy should "measure" the same.

You have plenty of time to study and think. The simplest thing to do is the 4% rule with an S&P 500 index fund. Place 20% (4% x 5 years, which should roughly be 5 years living expenses) in cash, money market, CDs) and 80% in index fund. Each year draw out another 4% from the index fund to replace used living expenses cash.

Take your time and good luck.


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