No. of Recommendations: 1
I am 61 years old and want to be sure that I will have enough money to retire on in 4 years. I now have approx. $600,000 in mutual funds and have moved most into Vanguards various funds including $150,000 in s&P 500. Am I making the right decisions???

I'm just a year or two behind you in age, but expecting to retire when I'm your age.... I began Fooling around only two years ago, after The Motley Fool Investment Guide explained to me how to do such things as make sense of financial statements....... Until this past week, I've had all the investments I guide myself [I'm also participating in a 401(k) plan at work.] in the form of stocks. This past week, I bought some Vanguard mutual bond funds. Why? Because I am of the school that believes the stock market is greatly inflated at present, and that a major correction is due. The Economist and Fortune magazine have both had articles along those lines recently, if you'd like to read on the topic. If and when such a correction takes place, mutual funds that are in stocks will also be affected.

I agree with the general consensus that over the long term stocks are still the place to be, but I think even those who say that the strongest will tell you that you should have from 3 to 5 years worth of investments in fairly stable (fixed income type) funds. At your age, even at mine (58) .... that starts to make more and more sense.

Don't let the fact that the stock market has exploded recenty mislead you into thinking it will only and always go up........

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