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To: Robert Rose who wrote (1831)	10/2/2000 5:10:28 PM
From: Libbyt	Read Replies (1) \| Respond to of 57684

I still believe firmly that it's all about asset allocation, how much of your total wealth you devote to a given asset. I agree with you that asset allocation is very important. However....it really is an individual decision of how much money to invest in the stock market, versus other investments. So many factors go into "asset allocation"...IMO based on your planned retirement age, other investments, other income sources....(real estate/business investments), and how much you personally feel you can risk of your assets. Some investments IMO are very high risk...with "the plus" being, that if you have invested correctly the financial reward for that risk is tremendous. I tend to follow and invest in stocks that IMO have the potential for tremendous growth. At some point in my life I'm sure my "financial goals" will be very different, and at that time my asset allocation will reflect this change. If I were planning to support myself from the income from my investments, then I would want to own more "blue chip" stocks that paid a dividend, but didn't offer the growth potential. I don't think that there can be a "formula" for asset allocation because every situation is different, and most likely each individual has needs which continue to change depending on many factors.

To: Robert Rose who wrote (1831)	10/2/2000 5:17:41 PM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 57684

Glenn, as much as folks here seem not to like to discuss it, I still believe firmly that it's all about asset allocation, how much of your total wealth you devote to a given asset. In your case, you appear to have about 80% in your business, and maybe 20% in the market. Rob, Your numbers are correct. I become concerned thatif I was to be too much on margin and then the market really topples, I would have a margin call. The terms of my business line of credit technically forbid me to draw on it for the stock market. They likely would not know but seriously, that could cause a major problem as far as cash flow. At any rate, prudence at this time cannot be faulted! ;) Rob I am trying to balance the best I can and apparently there are no sure answers. Glenn

To: Robert Rose who wrote (1831)	10/2/2000 10:16:20 PM
From: Libbyt	Read Replies (1) \| Respond to of 57684

folks here seem not to like to discuss it, I still believe firmly that it's all about asset allocation In rethinking my asset allocation, I probably have 15% of my assets invested in the stock market. I tend to like stocks that would be considered growth stocks, not blue chip stocks that pay a dividend. I don't use margin at all....and I don't "short" stocks....these factors IMO lower "my risk" compared to other investors. If my stock portfolio were to dramatically go down in value, it wouldn't affect my life style. (I wouldn't be happy...but I wouldn't worry about being homeless!) However...I mentioned this to Gene last week, that if the market doesn't have a "change in direction", I can add a very large tax refund from the IRS at the end of the tax year as an addition to my assets! I think when considering your asset allocation you need to take into consideration so many factors....that most likely everyone has different needs and "goals". Is your goal to increase your wealth, to have a steady income from your investments, to save money for your retirement, to leave money for your family to inherit? I have to agree with what William said on the A*** board: "It's entirely subjective. That's why CPA's, tax lawyers and estate planners exist." and "Everyone's financial situation and risk tolerance is different." and also from my previous post: "I don't think that there can be a "formula" for asset allocation because every situation is different, and most likely each individual has needs which continue to change depending on many factors."