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Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 19222  
Subject: Re: 5 Year Date: 4/27/2000 11:52 PM
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jangle1 asks,

I've let this lay dorment for a while now, but I just read the FoolU Q&A on assett allocation and there the advise is to have 3 to 6 months of cash and the rest 100% in stocks. This seems to be 180 degrees from your position of 5 years of cash. Any response to the FoolU Q&A?

The 3 to 6 months of cash is an "emergency fund" for folks that are working.

The 5 years of cash is for retired folks whose only income is what they "harvest" from their investment portfolios.

An asset allocation of 100% stock (plus the 3 to 6 month emergency fund) is appropriate while you're saving FOR retirement. Once retired, many folks feel comfortable having a larger cash/fixed income allocation.

intercst
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