Your money questions answered

Question: I plan on retiring in five to 10 years. For asset-allocation purposes, should I consider myself a short-term or a longterm investor?--Robert Regoli, Lafayette, Colo.

Answer: You're definitely a long-term investor. The past year has clearly demonstrated why you don't want a portfolio made up mostly of stocks when you're within a few years of retirement. But you'll be living on this money for decades. Even though the 10-year return on stocks looks poor right now, equities have come out ahead over a 30-year period.

Rather than solely focusing on time horizon to determine your stock/bond mix, figure out how much long-term growth you need from your portfolio, suggests Allan Roth, a financial planner in Colorado Springs. Among the things to consider: the value of your savings today, what you'll collect in pensions or Social Security and what you expect your expenses will look like post-retirement.

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