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Anyway, what are your thoughts about changing
allocations based on age? (more stocks when you
are younger versus more bonds when you are older)
versus a middle of the road 60/40 split that you can
hold forever?

I think fixed ratios are meaningless. The strategy I like is to keep 3-5 years of income needs in cash or very short term bonds and the rest in stocks or stock funds. Withdraw from the cash each quarter and sell stocks to replenish except when stocks are down. If stocks are down, wait until stocks recover to replenish. If you are an aggressive investor, 3 years income needs will work. If you are nervous, 5 years will be more appropriate. If you are VERY nervous, 7 years may be better.

Regards, Jim
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