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Subject:  Re: Lifecycle Funds Retirement Accounts Date:  1/18/2008  7:14 AM
Author:  TwoCybers Number:  61037 of 90120

You are asking about Market Timing - perhaps you have some magic knowledge or ability, but a whole lot of studies over a whole long time say market timing may win in the short term sometimes, but it looses the vast majority of times over a period of 10 or more years.

I would suggest there are other aspects of Lifesytle accounts you might want to look at. Take the LifeSytle accounts at T Rowe Price and Vanguard as an example. If you compare the 2020 and 2030 funds you will notice huge differences in allocation. Life a factor of two on the portion of equities between the firms. Many 65 year olds will live 95 years - so the idea of planing for a 10 or 15 year retirement is dangerous to your financial health.

You need stocks probably more then 50% to keep up for a 25 to 40 year retirement. So take a look at where your funds are and will be. What is the allocation for a 2010 or 2015 account? Assume that retirement will be more conservative - does that look reasonable for 25+ years? What I am saying is you may decide even though your retirement date is 2025 you would be better off with a 2030 or 2035 fund in some families.

As always watch fees. There is good reason a more aggressive (i.e. 2035) fund will require more work/costs than say a 2010/2015 fund.

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