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Author: telegraph Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 169  
Subject: Re: Where to start Date: 8/24/1999 4:26 PM
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If you haven't sold all your mutual funds, I would suggest no one 'bail out' of mutual funds and put the money in a money market, unless all of them are in tax sheltered accounts. Otherwise, you write the tax man a big check for all the accummulated capital gains, which could take nearly 20% of your nest egg away.

Secondly, I wouldn't be in a hurry to change asset allocation the year you retire - wait until a year where you have little 'income' to the tax bite is less when you generate taxable income from selling stocks/funds.

If you have more than a 10 year time frame (ie, intend for one or both to live 15-20+ years), then you should plan on having equity exposure to protect against inflation. Being 100% in fixed income, with a long time frame, will result in gradual and significant loss of buying power with your money.
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