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Subject:  Re: 401(k) allocation to eliminate s/t bond fund Date:  3/4/2011  10:19 AM
Author:  ziggy29 Number:  68613 of 88792

>> The allocation has performed nicely, but I think I'd like to eliminate the Short-Term Treasury altogether. The money in this account will not be used for another 35 years, so there doesn't seem to be any point in having any of it in the S/T Treasury and seeing no growth.

Does this seem like a good idea or is there any consideration I am not taking into account as to why I should not make this adjustment?

If you are comfortable living through another 2008-09 scenario without short term bonds or cash, then I think it's an acceptable idea given your time horizon. But you need to be honest with yourself and know you can sleep at night if the market drops 40-50% again as it did then -- and not panic and sell it all near the lows. I know people who bailed out in early 2009, taking almost all the decline but missing the snapback rally. Ouch. Don't be that guy!

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