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TMFPixy writes,

<<<<<I read an article that Pixy wrote in April about having a 3-5 year cushion for income while retired. It explained distributing the money you know you would need into money market accounts and bonds, and the remainder invested in stocks. I wonder if he would reccomend any modifications to the plan if your investment funds were substatianlly more than the example given and you were age 30? >>>>>>

The only thing I ever strive to recommend is that each of us make our own decisions based on our comfort level and understanding. Personally, I subscribe to the theory that age is totally immaterial when it comes to investing. My style of investing would not change because I am either young or old. That means I always endeavor to keep five years' of needed investment income out of the stock market. Others would keep three, and still others seven. They're no more right or wrong than I am. You, then, need to establish your preference based on your understanding of markets and your comfort level.

This answer may be a bit difficult for a 30-year-old to interprete.

I agree that in retirement one should keep a minimum of 5 year's worth of needed investment income out of the market. However, a 30-year-old planning to retire at age 50 won't need any investment income for another 20 years. Does such a 30-year-old still need to keep 5-year's worth of living expenses out of the market, or would a 6-month "emergency fund" be sufficient.

Certainly you're not suggesting that a 30-year-old spending $50,000 per year wait until he had accumulated $250,000 in a money market fund before he invests his first dollar in the stock market.

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