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<<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. 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?>>

Although I'm probably farther out from retirement than you are, I have found some good resources for you. Try visiting the Workshop board. Continuing discussions on mechanical investing via stock screens with alot of tips on asset allocation. Post #12798 is a good place to start, as well as the FAQ button at the bottom of the page. You could use this board to get some excellent ideas on how to manage the stock portion of your portfolio.

Books: I'm currently reading James O'Shaunessy's "How to Retire Rich" and he gives a good discussion of asset allocation strategies and options given the individual's risk tollerance, age, retirement goals etc. A list of other good books can be found here:

Hopes this helps, Sarge!

Semper Fi,


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