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Greetings, SgtGarcia, and welcome. You wrote:

<<I am considering converting my company 401K that offers mutual funds only to an IRA where I can purchase individual stocks and use the RP4 and other strategies to obtain better performance over the long term than with mutual funds.>>

Generally, you are unable to transfer your 401k money while you're still working for the firm sponsoring that plan. Some plans allow an in-service distribution of part of the money based on age and years in the plan, but that's up to the plan. If you can receive an in-service distribution from yours, than what you propose is possible. Otherwise, it's not.

<<My thought is that when I'm ready to retire in a few years I'll create a cash reserve equal to some number of years of expenses, say three, and keep the rest of the assets in stocks, moving to cash as required whenever the portfolio is adjusted. Is this a reasonable strategy given that I may be retired for 30 years or more? How many years of expenses should be kept in cash? What potential hazards need to be planned for? What experiences have others had with this or similar strategies?>>

There's no magic answer here. Each of us is different. I plan on a five-year reserve. One year will be held in interest-bearing cash accounts (money market, checking), four in something like mid-to-short-term bonds, and everything else in stocks. For some thoughts on this matter, see the 23 posts on this board starting at . Those postings will give you much to consider as you decide what to do for yourself.

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