No. of Recommendations: 0
<<This is a very personal question. There is no right answer. Each person has tolerance limits. What amount of volatility are you willing to have for the probably greater performance of the R & P stocks? Only you can answer. With you 5 years in MM you sound fairly conservative...>>
My main concern is my porfolio expenses. Volatility is price we pay for portfolio growth. I'd like to see my portfolio bounce around less but it is not my main concern. I just wonder if I should diversify my porfolio more...say from 12 stocks to 15 or 20?

According to "The Retire Early Home Page" (
my stock/MMF allocation for a 50 year payout period is right on the money. I also have a 3.33% withdrawal rate which is right on.

My investment expenses are 1.6% (commissions and spreads) which is 8 times higher than the 0.2% intercst lists as an early retiree's expense ratio. I do this with the hope of outperforming the S&P500 index.

As a retiree in a foreign country with poor employment opportunites, I need to smooth-out my monthly income. That's why I keep 5 years of living expenses in a MMF. Someone who lives in the USA with good employment opportunities can get by with 3 years in MMFs.

Even the most aggressive retiree needs to smooth out his monthly income to some extent. Otherwise, one year you'll live on say $3000 per month and the next year it could drop to $2000.
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