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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Dan Meleney who wrote (47831)	5/7/2012 11:13:00 AM
From: thatsnotluck	Respond to of 78744

i like your answer. much better than a one size fits all. as i approach a hopefully impending retirement, i am loosely targeting something like the following. 3 years of expenses in MM outside the investment accounts (to carry me through until i can make withdrawals from IRA). one more year invested in BSV 'indefinitely' within investment accounts (IRAs). aside from that, maybe 10-15% bond funds, maybe 10-15% target cash and the rest targeted for equities. at the moment, actual cash above target. all this gives me the opportunity to make gradual adjustments as necessary as well as have some flexibility to take advantage of opportunities as they arise. the above works for me, but each of us, as you say, will have our own specific set of circumstances we need to manage to.

To: Dan Meleney who wrote (47831)	5/7/2012 2:14:21 PM
From: Investor2	Read Replies (1) \| Respond to of 78744

While it's true that the typical formulas for asset allocation ignore specific situations, the formulas are generally based on valid statistical relationships of risk and reward over different periods of investment. The assumption is that the investment period is related to the age of the individual. I'm currently between 65% and 70% stocks. That allocation (which I'm considering changing) is not so much based on my need (or lack thereof) to draw money from the accounts in the near future, as it is my evaluation of the risk/reward of staying in equities. Thanks for your thoughts! I2