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Hello: I have a long question and don't know if you can help. I have been a fool for several years, am 54 years old, and
have recently had to retire and live on my liquid assets abruptly. My assets are as follows:
Money market fund: 325K
Bonds (T-bills, corporate) 900K
Stocks and mutual funds: 1,200K (No taxes account)
Summer home with equity of 600K, in negative cash flow
of 22K/year.

I have avidly read your retirement page and know I am way too top heavy in cash and bonds. My stocks are in
companies such as AOL, CSCO, IBM, INTC, some retail, cyclicals and others which I have held for a long time.
Today I purchased 12K of the Foolish Four and understand your retirement 75/25% plan for removal of funds. Sorry
to be so long winded.

I AM NOT a market timer, but I know valuations are very high. What portion of the money market fund and bonds do
I move into equities, and at what rate of speed (Do I dollar cost average). Should I put this money into primarilly a
foolish four plan, and being that today was the changeover, do I have time for this? I am not asking you to decide for
me. I am a great study of the Motley Fool and the markets in general. THANK YOU. Happy New Millenium.



The missing fact is how much you need in retirement. Lets say for now 4% to 5% of your investments (do not count the summer home)

Lets say 400,000 in municipals. Use a 4 year ladder with the first year 2001. 100,000 in money market for year 2000 expenses.

The balance should go into equity. Say index funds or options on indexes, SPY, QQQ etc. for part.

I would discount the value of AOL in my planning since it is high risk but would probably hold on to it. Maybe sell some covered options on it.

Depending on your budget you may want to sell a house and invest the proceeds.

I would do some dollar cost averaging on index type securities. I think I would skip January and hope for a February dip. Then go in over 3 to 6 months. For single stocks pick the stock and maybe waite for a dip. However the value of whatever you buy in a couple of years should be more than you pay now so dollar cost averaging is aimed at helping your emotions as the market falls. If the value is less in a couple of years it doesn't matter wheather you dollar cost averaged or just purchased now.

Time the selling of some bonds with your out look on interest rates.

I do not follow the foolish 4 but I think you can start any time.


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