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If I were 35, I'd make sure I had a good safe nest egg, then drip into stocks and not worry about it.

Exaclty, which is why I was asking the poster who at 35 was 70/30 or 80/20. I'm 100% equities in my 401k account and have an extremely modest (rebuilding) e-fund in simply a high interest bearing ING interest account. Part of my question (to be top-posted later) is what's the best way to optimize the e-fund as it should hopefully grow?

statistics show either there is no point in putting any investment money (i.e., not contingency fund) is bonds/fixed income as long as you have new money to invest in market down turns

That sounds a lot like market timing. Is there something here that I ought to investigate further?

Do you have enough "safe money" ......that will end up being 20-30% of assets

For my e-fund, I am shooting for 3-6mo of living expenses. Over time, I hope that 20-30% of assets would be a heck of a lot more than 3-6mo living expenses and having 20-30% of assets out of equities would be overkill.

Also, one other idea I had (again planned for a top-post) was considering that the 401k could act as some sort of extreme e-fund by invoking the SEPP provisions after a rollover. For example, let's say I lose my job and need to start drawing supplemental income.... then I could rollover the 401k into an IRA, then invoke SEPP (and use the ~4% safe withdrawal rate) until and if I recovered. Again, this would be more of a catastrophic e-fund (ie, air bag, not safety belt type of thing).


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