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Strategies & Market Trends : Gorilla and King Portfolio candidates - Moderated -- Ignore unavailable to you. Want to Upgrade?

To: Apollo who wrote (588)	1/5/2004 10:45:38 AM
From: Mike Buckley	Read Replies (3) \| Respond to of 2955

Apollo, Regarding the use of a line of credit as emergency cash ... The contract probably requires that you report any substantial change in your employment situation. (I realize hardly anyone ever does that.) If a couple reports that both spouses have lost their jobs, the line of credit could become in serious jeopardy. Similarly, the application for the line of credit probably requires that you state the intended use of the funds. The contract is probably inextricably linked to the application. If you use the funds for a purpose other than specified in the application, fraud issues could surface. While I recognize that neither of these issues is likely to surface in any sort of practical way, they might be worth considering depending upon your values. Regarding 5 years or 6 months living expenses in cash ... That depends upon each person's circumstances. As an example, if a person is living solely off one's assets, 5 years' living expenses in cash might be way too little. Yet if a person's net worth is $10 million and his six months' living expenses is $50,000, it makes me wonder if there is any need in having any cash if those living expenses are provided by guaranteed income generated by the assets. In other words, in my mind there are no firm "rules" that apply across the board. --Mike Buckley

To: Apollo who wrote (588)	1/5/2004 1:00:12 PM
From: J F Allen	Respond to of 2955

For clarification, I am retired and have been for 10 years as is my wife. I have an emotional bias against debt, and owe nothing to anyone. I look at at a spectrum of liquidity, Cash, money markets, interest bearing bond funds,stocks,and real estate. We own a couple of California homes and some raw ranch land. Because of California home values I try to keep balance across the spectrum. Challenging with bubbles moving up and down. As --Mike noted we live solely off of our assets