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You've gotten a lot of good advice here. I just want to add a few suggestions.

Calculate the difference between your marginal tax rate and the capital gains rate. If you invested in the Foolish Four and earned about 20% over the next few years, how much more is that than your current return? How long will it take to recover the extra taxes? Rember most of your funds will be taxed at the capital gains rate anyway. Its only the additions that have occured in the past year that you are concerned with.

You can do the same with the S&P index just use a return of about 10%.

I understand your concerns about betting the farm. As someone pointed out you are betting the farm whatever you do or do not do. I think its best to spread the risks including the risk of earning too little, over a variety of good stratagies. Instead of putting all of your farm in the S&P, put some in the RP4 and in Rule makers.


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