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Author: DHatch Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75384  
Subject: Re: Retirement: % withdrawal for income Date: 12/13/1999 5:50 AM
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TMFPixy Date: 12/12/99 12:48 PM Number: 16175
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<<I believe I have made the disclaimer clear in ...>>

Gee, I thought I had asked you not to do that.

<<And I have suggested to no one that they blindly follow my lead.>>

Sure, however you write so well and have written so many very good and quite valuable posts, that some are going to do it anyway.

<<Indeed, I have clearly stated there are no guarantees and no one should enter into such a portfolio without understanding fully what they are doing.>>

Very good advice, however some will never fully understand what they are doing or why they should or should not be doing it. Some have so much faith in TMF that they do not seriously question what is said.

TMF has such good intentions and has done so much to help so many that some feel it to be inappropriate to even look at the status of any of the Emperor's garments.

<<The portfolios are my personal money and represent what I am doing.>>

Ok, however you are setting an example for others and should be aware of the consequences of others following your example.

In reality, by placing 100% of the stock portion of a retirement portfolio in the Foolish Four, the Foolish Four has been taken to such an extreme that it has effectively become perverted into the Ridiculously Risky in total violation of common sense which existed long before Foolishness and which has always been the primary root of Foolishness.

<<In short, I reject your apparent elitist attitude that people are lemmings who blindly follow others off a precipice.>>

Reject what you will, but do not deny reality.

I never said that people are lemmings, although some may occasionally act in a similar fashion.

I suspect that it is more likely that people more often behave more like sheep, although there may be some bulls and bears as well as some would-be wolves and sharks.

<<Ya makes your choices and ya lives with the results.>>

True, true, however one might not otherwise logically choose to have one stock represent 25% of the stock portion of a retirement portfolio, or four stocks represent 100% of the stock portion of a retirement portfolio, unless they were attempting to follow the example of someone to whom they really looked up to and respected.

.02

P.S. Hey, how about you! Why would you invest a retirement portfolio in such a manner? If it is because you don't want to spend more than "15 minutes a year", then merely consider the advantages of adding some DIA, SPY, and QQQ to the stock mixture because that would really smooth out the variations, probably produce comparable or even superior results, and would be so much more stable so as to be much more suitable and appropriate for a retirement account.

Just look at what would have happened over last year, over the last ten years, over the last twenty years, if you would dig up the information. Yes, I recognize that DIA, SPY, and QQQ have not been in actual existence all that long, however the Dow, S&P500, and Nasdaq have been around for a while.

We can all keep learning, if we will just keep open minds.

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