Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Old 12-04-2007, 09:15 AM   #41
Thinks s/he gets paid by the post
jIMOh's Avatar
Join Date: Apr 2007
Location: Milford, OH
Posts: 2,085
Originally Posted by peggy View Post
Am I missing something, because I thought the 3.5% was the withdrawal rate, not the expected return (which should, of course, be higher than the withdrawal rate)?

And as a follow-up, we switched over to 60-40 yesterday afternoon. (Well, technically, we set things in motion to do so; the actual sales in our taxable accounts will occur on 12/28 and 1/2, to split the capital gains taxes between two years.)
My response was to someone which wanted to only spend the return of a CD type investment.

In my post the 3.5% was the expected return from the CD long term, and the withdraw rate. I was suggesting this was not a good idea, IMO.

Light travels faster than sound. That is why some people appear bright until you hear them speak. One person's stupidity is another person's job security.
jIMOh is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 12-04-2007, 03:54 PM   #42
Recycles dryer sheets
Join Date: Nov 2004
Posts: 260
Originally Posted by jIMOh View Post
My response was to someone which wanted to only spend the return of a CD type investment.

In my post the 3.5% was the expected return from the CD long term, and the withdraw rate. I was suggesting this was not a good idea, IMO.
Ah! I did, in fact, miss something. Thanks for clarifying.

peggy is offline   Reply With Quote
Old 12-04-2007, 09:39 PM   #43
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Ed_The_Gypsy's Avatar
Join Date: Dec 2004
Location: the City of Subdued Excitement
Posts: 5,247
What sub-prime crisis?

I have not made any changes based on any news.

What I have been doing is sending dividends to a money market fund and waiting to rebalance. I am still dragging my feet on rebalancing, but I moved the cash to a bond fund in the meantime. I may or may not rebalance. Another poster asked how to begin setting up to begin programmed withdrawals. Frank Armstrong recommended funneling 7 to 10 years of distributions into a short-term bond fund, from which one would eventually withdraw. So, I figured, maybe I should just let the dividends keep going into the now-bond fund? (I figure to stop working in maybe 5 years, more or less.) Meanwhile, I can always rebalance later. The idea is to gradually fund the bond fund buffer with dividends.

Normally, I am 100% invested in equities. My portfolio has been screaming along at 20% a year for the last 5 years (at least) and trees don't grow to the sky, so why not start priming the pump a little? If I were younger, I would still be 100% in equities.

Ah, well.


my bumpersticker:
"I am not in a hurry.
I am retired.
And I don't care how big your truck is."
Ed_The_Gypsy is offline   Reply With Quote
Old 12-05-2007, 02:33 AM   #44
Thinks s/he gets paid by the post
Join Date: Jul 2005
Posts: 4,931
as i said a hundred times. its no longer about growing richer, its about not getting poorer. after so many good years you know a bad year is almost a given at some point. im usually not a dirty lil market timer but i got to admit i have been hunkering down over the last year and probley am at the lowest amount of equities ever since the eighties. i think im under 40% at this point.

mathjak107 is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Question - Changed our minds on an auto loan Sue J FIRE and Money 10 08-22-2007 10:22 PM
Has anyone changed to Hartford? dessert FIRE and Money 17 02-18-2007 08:41 PM
are you FI or at least half way there and has your attitude changed toward work? maddythebeagle Young Dreamers 35 11-12-2006 12:01 PM
Changed My 401k Allocation Today GTBuzz FIRE and Money 4 03-24-2006 11:29 AM
Best CD Rates, PFCU Just Changed Theirs!!! ShokWaveRider FIRE and Money 15 07-02-2005 02:24 PM


All times are GMT -6. The time now is 06:10 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.