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Automatic TRANSCRIPT

First question comes from Peter. Hi Allison love the show both Motley fool answers in the Museum of fine. Art are both abbreviated. Fa coincidence. I mean I'd probably Ryan grows. Wouldn't you agree this class last as it get? Yeah I've heard quote someone on the show. Call Him Robert say that money should be invested in stocks. Only if it won't be needed for at least five years. How does this work? What if I don't need my money for six years? Should I invested in stocks but after one year goes by that means. I need the money in five years so by Robert's rule it shouldn't be invested in stocks anymore. Investing for one year only seems really risky. Well I'll speak for Robert here and to you and point out that I'm actually pretty squishy on this. Sometimes they say five years I say three to five years partially because I think it does depend on the situation in the individual and it also depends on history so. Let's look at some historical numbers fleas so using data from the website. Nyu FINANCE PROFESSOR ASKS. Waft mortaring equity professor. When I was that he was my equity valuation. Professor like it was difficult. It was a lot of math and back. Then we didn't really have a lot of like calculators and stuff just slide rule and abigail advocates on fire. Well anyway so I pulled out my abacus and I calculated the percentage of instances over different holding periods with stock market made money stock Martin meaning. Us Life got stocks from nine hundred. Twenty eight thousand nineteen so for a one year holding period. The market makes money seventy-three percent time so three out of four years. It's pretty good. Three years eighty three percent of the time. Five years eight percent time so not a big difference between the three and five years ten years. It's ninety four percent twenty years one hundred percent so the longer you hold on you are more likely to make money but even a ten year holding period isn't guarantee that you're gonNA make money so if I were really looking at a hypothetical six year holding period my first question would be. How much have I already saving? Is it almost enough to cover the cost? If I've already saved most of what I need I probably wouldn't take a whole lot of risk with it That said if I needed a little extra growth and I had six years I would probably make sort of A. It doesn't have to be an all or nothing decision. I would probably put it mostly in stocks but gradually reduced the stock exposure as I got closer to the point where when I was two or three years away it probably would be mostly in bonds and CDs and this is what I do with my kids college Savings once they got into high school even now that my son is in college a little bit of it is in the stock market but not all of it. Yeah I do you remember a couple years ago. I asked you advice about the college situation. What I decided to do was put two years of college into cash and then after one year went away I put another year in cash so there was always two years of rolling cash available. Because I didn't if the market crash paying for college could have been dicey. It was very painful to take out two years of college because I don't know if you've noticed colleges experiments expense to the market and just have it sit in some you know. Low interest. Bearing account was not the most fun thing in the world. But you know what it did. Reduce my stress a lot. Because I just didn't have to worry about Ron. What's your longest held? Position Investor owned Disney stock for about eighteen years. Oh Wow yeah it's awesome. It's been it's been good to me so far string of the eagles over the weekend said if you ever go to. Disneyworld do just walk around pointing out those. I bought that stock for my kids both around the time they were born old. And my daughter's twenty two now so yes it's been a