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How long will your fixed asset position take you?
Old 10-06-2008, 09:41 AM   #1
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How long will your fixed asset position take you?

I've got about 7 to 8 years at current spending level with some cushion built in. I am hoping my equity positions recover by then or I am going to have to come up with a plan C. (Plan B was the possibility of having to live off the fixed assets for some period of time).
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Old 10-06-2008, 11:08 AM   #2
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Depending upon how dividends hold up I can probably go 14+ years.
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Old 10-06-2008, 11:11 AM   #3
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At current spending levels, 4+ years if I start SS at age 62.
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Old 10-06-2008, 11:21 AM   #4
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CDs plus pension-annuity-style payouts will take me three years. I expect the rest of my fixed assets to outlive me provided the dollar has some value and the creek don't rise. I will continue adding to equities along the way, and will be interested to see where they are in 15 years. I will not pa-nique.
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Old 10-06-2008, 11:28 AM   #5
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After my 2.5 years worth in short term accounts, I have another 14 years worth of cash and bonds in my retirement fund. This will come down after I rebalance. I'll be reluctant to let it drop much under 10 years though.

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Old 10-06-2008, 11:34 AM   #6
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I'll be at about 2 years cash if I get to make my last planned cash to equity buy. I'm adding about 1 year cash to equities today. I may go lower if the market keeps falling significantly and my HELOC is still working. I'm definitely spending down the cash and moving again to 100% equities. No need to hold or slowly spend a bunch of cash while the market recovers, and I don't want to hold a bunch of cash all the time as part of my AA. If you put cash in during the market lows, the market only has to pass those lows before you need to sell for those equity buys to have payed off. Will the market stay this low or lower for two more years? Worst case is that it goes lower for two years and I'll have to sell some of the equities I just bought for a small loss. The best case is that the market recovers completely in two years (ha!) and I gain 50% on the equities I buy today. I'm OK with that.
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Old 10-06-2008, 11:38 AM   #7
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The cash survival time depends on a lot of variables. What will be the "safe" interest rate? What will inflation do? What budget level will I follow -- nice or austere? Should I assume the Bernicke spending reduction?

On the nice budget and current rates, I can get by for about 8 years. I would have a hard time justifying a lot of travel or many luxuries if my equities were falling.

If I kick down to austerity spending, I'm good to age 100. After that, I'm sure I won't care.

I was targeting for 60/40 equities/fixed and with the drop I'm probably 50/50 by now. I don't plan on moving any cash into equities. I am continuing to buy equities in my 401k and SEPP plans but they aren't keeping up the equity portion.
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Old 10-06-2008, 11:40 AM   #8
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Two years' expenses in cash.

Dividends have been ramping up nicely (through the beginning of 2008, anyway) and could nearly extend that indefinitely if necessary.

Then there's always the kid's college fund...
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Old 10-06-2008, 11:40 AM   #9
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4-5 in true cash/cds and then a big slug in Wellessely -

I have been throwing cash in the market as it has been falling - I am considering throwing more/rebalencing....but I may just hold tight - the fear is thick out there and this could get worse.
Two men at our sons soccer game on Saturday were talking about pulling there $ out of the market this week before it really crashes - it's this mindset that could make the crash happen....

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Old 10-06-2008, 12:26 PM   #10
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How long will your fixed asset position take you?

just about long enough to get me a job.
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Old 10-06-2008, 12:29 PM   #11
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I am "all cash" and I project I will "run out" of money, not die, at age 97.2 years. If I am still here then I will file for a "bail out" or go back to school to learn a trade.
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Old 10-06-2008, 01:04 PM   #12
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3 1/2 years living expenses in cash. 6 years bare bones.
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Old 10-06-2008, 01:20 PM   #13
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12 years at subsistence level, but at full level if I were working part-time. Full SS in about 6 years.
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Old 10-06-2008, 03:56 PM   #14
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5 years in cash/CDs.....another 5 in my bond fund.
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Old 10-06-2008, 06:06 PM   #15
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I am 50, retired 2 years.

My fiixed assets would only last a few months, since I keep almost everything in stocks. However, I can live indefinitely on the dividends, which have been rising considerably faster than inflation.
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Old 10-06-2008, 08:21 PM   #16
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At least ten years but probably more like 12. DW can begin collecting social security next year. I have been buying more high dividend stocks as the market fell, so dividend income should be over $9K a year. Those two together should nearly cover all discretionary spending, while COLA'd pension covers all basic living costs. While I don't enjoy seeing my net worth fall, I'm not losing any sleep over it.
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Old 10-06-2008, 08:26 PM   #17
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About 8 times current spending. With dividends, interest and a 5K CPP, should last 12 years or more if we have to lower lifestyle.
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Old 10-06-2008, 08:28 PM   #18
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I'm at about 5 years and 33 years old.
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Old 10-06-2008, 08:44 PM   #19
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We probably have about 10 years. However, as DH has not yet retired and I am only semi-retired, we are likely to keep working at least part time until the market shows signs of stabilising. I am not sure that it would be a good time to FIRE given the current market conditions.
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Old 10-06-2008, 09:35 PM   #20
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Quote:
Originally Posted by shotgunner View Post
I've got about 7 to 8 years at current spending level with some cushion built in. I am hoping my equity positions recover by then or I am going to have to come up with a plan C. (Plan B was the possibility of having to live off the fixed assets for some period of time).
Cash for 4 years in pre crash of 2008 mode. Being I have no debt of any sort, I'm sure I can clamp down enough to make at least 10 years before I start getting really creative on how to make a nickel bleed.
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