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Old 10-06-2008, 10:37 PM   #21
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2 years cash, 3 years more in bonds...
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Old 10-07-2008, 06:26 AM   #22
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Some of you are counting dividends. If we assume equities still pay them, my "nice lifestyle" spending is covered for 10 years. I never have to go on my "austere" budget.

Maybe I need to revise my "austere" budget upwards.
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Old 10-08-2008, 06:52 AM   #23
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About 3-4 years, FI?RE'd last Friday, how's that for timing, LOL!
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Old 10-08-2008, 07:19 AM   #24
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Dividends are income so I definately would count them as long as you are diversified.
I am at about 24 years right now although that should become indefinate as I increase my stock holdings.
Of course, that assumes that stocks continue to hold any value in the future (which I do)
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Old 10-08-2008, 07:45 AM   #25
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I suppose it all depends on whether the financial meltdown continues and hammers the dollar into the ground. Assuming the dollar retains its present value (an iffy assumption), I probably have sufficient cash to last until the Grim Reaper comes to call.
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Old 10-08-2008, 10:13 AM   #26
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I don't count dividends, just like I don't count interest income either. I'm using present value on my living expenses and I'm just assuming that the dividends and income will help offset inflation in my living expenses making it a wash.

Of course if someone is living off stock dividends only, then the point is mute. But gosh - dividend cuts seem like a real possibility as companies deal with the credit/financial crisis.

Audrey
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Old 10-08-2008, 11:33 AM   #27
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Quote:
Originally Posted by audreyh1 View Post
I don't count dividends, just like I don't count interest income either. I'm using present value on my living expenses and I'm just assuming that the dividends and income will help offset inflation in my living expenses making it a wash.

Of course if someone is living off stock dividends only, then the point is mute. But gosh - dividend cuts seem like a real possibility as companies deal with the credit/financial crisis.

Audrey
My only individual stock (Bank of America) cut its dividend by 50%. The stock price is down at least 30% in the last week. I don't count dividends in my normal thought process.

I like your idea of discounting inflation and interest income. I think I'll run my numbers that way and see how they compare. The problem I see is my pathetically small pension isn't COLAd so it would not be properly discounted. SS is so that should be covered.
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Old 10-08-2008, 12:57 PM   #28
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Yeah I just consider it all in terms of "present value" numbers and figure that any income earned on the cash/fixed income will cover inflation.

Audrey
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Old 10-08-2008, 01:03 PM   #29
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I went through earlier this week (Monday Evening - I wonder what trigered me to do this) - Have around 8-9 years in Govt bonds. But DW will have a small pension in 3 yrs. And be eligible for SS in 6. Those combined more than cover our current style of living (assuming around 3.5 avg inflation)- So we should be fine (repeat to myself ten times) barring any unforeseen happening.

Of course, my equity - bond distribution will then be around 95 to 5 (equities to bonds) so market better start kicking in. *g*.

Rick
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