Originally Posted by nico08
I was just wondering if you use the amount that you have as emergency money/short term living expense money in the total investment amount that you use to estimate your four percent
I count the family assets held at Vanguard and Fidelity as our "portfolio" being tapped for living expenses. That amount includes the emergency short-term bond fund, and a five year TIPS ladder held through Vanguard we would consume in a market crash. That "portfolio" is currently roughly 60% equities and 40% cash/bonds managed on a "total-return" basis.
I exclude the cash (normally less than 0.5% of net worth) in our local credit union mainly for simplicity, and to make day-to-day portfolio value comparisons easier.
I also have a separate "portfolio" total which also includes some unimproved land we own, since I expect to sell that lot eventually and deposit the proceeds at Vanguard. I keep it separate because it is difficult to value and could easily take a year to sell. That is the only physical thing
I include in a "portfolio" calculation. I exclude all other things
because they provide us with services such as shelter and transport instead of cash. Though I will include them in my "net worth" calculation.