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Subject:  Re: Retirement through Mutual Funds... Date:  9/30/1999  9:29 AM
Author:  pauleckler Number:  14144 of 102780

Welcome to the board Peace.

Fundamental to Fooldom is the concept of dollar cost averaging. Because no one--not even the experts--knows what is going to happen and especially when the stock market is as high as it is likely to get, you do better to buy continuously at regular intervals regardless of the price. Therefore, you should continue to buy mutual funds and not transfer funds to your fixed income account.

Although people think the S&P is high at the moment, they have been saying that ever since the Dow passed 3000. Eventually they will be right; so far they have been wrong. Clearly the people who write stock market commentary for newspapers and other media are not experts. They merely fill their alloted space. You would be best off to ignore them.

The Foolish wisdom is that corrections in the stock market can be expected from time to time. These present a nice buying opportunity. But most will not last long. If you try to predict them, you will usually be wrong, and your results will be worse than with dollar averaging.

Each must make his own choices, but for your age, most Fools would advise you to put all your funds in stocks and none in the fixed income savings pool. Fools would put funds in the savings pool only if you thought you would need them in the next 3 to 5 years.

Best of luck to you.
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