UnThreaded | Threaded | Whole Thread (10) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: JLC Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75381  
Subject: Re: Asset Allocation Date: 4/19/2013 9:06 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Does this all sound about right?

You pretty much have the idea.

My only quibble would be about bonds. Most people do not buy individual bonds. Usually too expensive (from commission and spread fees) so people buy bond funds. Totally different animal. A bond fund can and does act just like an equities fund. You can lose capital. Nothing is guaranteed.

So I would modify Rule 2 to Treasuries and CDs only.

Personally, following the KISS Principle (Keep It Simple Stupid), have only 2 rules: Rule 1: Money needed in 5 years or less keep in a money market fund. Reasoning is you can get close enough interest rates to CDs/Treasuries that the difference is minimal. Plus, you don't have to tie up the money for months/years at a time. Rule 2: Money needed more than 5 years away, stock market/other investments candidate.

JLC
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (10) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement