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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75825  
Subject: Re: Inherited IRA - Asset Reallocation Date: 3/10/1999 9:48 AM
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Mmcleod asks:

<<As a result of an inheritance, my portfolio is now heavily weighted towards US Treasuries. (80% bonds, I am in my early 40's) What thoughts do people have on the processes of asset redeployment?

I am concerned that with the markets near all time highs it might not be a good idea to shift all the assets at once into say S&P500 index funds. Perhaps a dollar cost averaging approach would be better – but over how long a time period? I was thinking about a 12-month process to move the investments.>>


If you're concerned about the inability of this bear market to sustain itself and fear buying in at a high simply to see it plunge overnight, then certainly using a dollar-cost averaging technique is appropriate. I'm guessing you're looking at about a 20-year term, though, which historically has been ample time to overcome a significant market drop. Still, life holds no guarantees. Thus, I for one have no criticisms for anyone using a gradual method for getting a lump sum into the market.

Regards….Pixy
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