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Subject:  Re: portfolio allocation Date:  11/26/1998  11:07 PM
Author:  BillStanley Number:  6807 of 98949

Pixy writes.

<< There are many theories as to the "appropriate" allocation for those already retired. I personally don't want any money I know I will spend within five years in the stock market, but I want 100% of that which won't be used for five or more years in stock. >>

<< So who said five years of income has to be in a money market fund or CD? I might keep one year's spending money in a money market fund, but the other four would be in short-term to intermediate-term bonds, treasuries, etc., to garner the relative safety with a slightly higher return. >>

At Dow dividend rates 12 k to 15 k will be thrown off in dividends. Additional filler of 5 to 8 k means almost nothing is mandatory in money markets or treasuries. I'm betting the account mix is already throwing off more than 20 k cash in dividends and interest each year.

I do believe in maintaining plenty of dry powder in the form of money market cash but it is primarily in hopes of a market decline or crash that will present opportunities to purchase.

Bill Stanley

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