The Eye said:It's in the DMG. I think page 143. One of the inclusions in "Starting at Higher Level" says three magic items (level+1, level, and level-1) and gold equal to a magic item level equal to your level-1.
The latter. It specifically says that the gold can be spent on further magic items if desired. And, given how quickly the price of magic items scales, it's quite possible to get several more items with that gold if you're at paragon or epic tier.Otterscrubber said:Those are decent guidelines, but I think after a certain level characters will have more than 3 magic items. Perhaps those are their highest level items? Or any addition items are bought from the gold allowance?