Foolishoamy Date: 9/26/00 7:46 AM Number: 25077
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<<For someone who does not feel comfortable picking thier own stocks this is probably an ideal method.>>

Thanks. I believe that it also can be useful as a comforting "core" holding for someone who is also comfortable picking some of their own stocks.

<<It sure beats giving your money to some mutual fund manager to underperform the market and charge you high expense fees!>>

Yes, it certainly does.

<<For me however being a long way from retirement I would eliminate the cash portion as I believe I can handle the risk.>>

Hey, that's cool. If you can handle the risk and plan to stay in long enough, you might even consider being more heavily into QQQ than SPY. I suspect that over long periods most will come out better taking on as much reasonable risk as does not exceed their personal comfort level. One size need not fit all.

<<As I got close to retire or at retirement I would move some assets into cash in the cd latter method desribed on the retire early homepage board.>>

That sounds reasonable. Do realize that the ladder method may be used with treasuries as well as with certificates of deposit and even with selected bonds if one is so inclined. I personally am not generally inclined to use bonds very heavily although I have done so when interest rates were over 12%.

<<Do you read that board? If not you might want to check it out.>>

Yes, I have read that board with considerable interest. Thank you for the suggestion and reference.

Sincerely,

DHatch

P.S. I note that you were or have been a firemen. A long time ago I was a volunteer fireman in what was then a relatively rural area and we used the 1934 V-8 Ford Firetruck. That V-8 would make it really fly, however those unassisted mechanical brakes, even though on all four wheels, would barely slow it down going downhill with a full load. Even with siren and lights, I guess we were real risk-takers back then, but everyone knew we were coming and learned to get out of the way.