<<If it were my money (but of course, it's not), I'd invest every penny that I don't expect to need within the next 5-10 years in stocks. For a 28-year-old in a 401(k) plan, of course, that's all of it. Over that period of time, I expect with very high confidence that stocks will outperform all other investments. Since (by hypothesis) I can afford to ride out the inevitable volatility, I want all my money going for the best possible long-term returns. Over shorter periods of time, my confidence level is not so high; therefore, money that I will need sooner (whether 2%, 28%, or 100% of my holdings) goes into less volatile investments -- primarily double tax-free money markets. By the way, I suspect this is an unnecessarily conservative treatment of my medium-term (1-5 years) money. Does anyone have better ideas? >>I wish I was 28 with a chance to invest 100% of my 401(k) into stocks. Lets see, I would be $11,983,195 over my original investments. The sooner you start the better off you are.Phil
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