How long will your fixed asset position take you?

[shotgunner]

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).

 

[Bikerdude]

Depending upon how dividends hold up I can probably go 14+ years.

 

[REWahoo]

At current spending levels, 4+ years if I start SS at age 62.

 

[CuppaJoe]

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.

 

[audreyh1]

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.

Audrey

 

[Animorph]

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.

 

[2B]

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.

 

[Nords]

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...

 

[Donzo]

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....

Oh, Mommie!! Said with Seinfelds Kramer flair...........

 

[lazygood4nothinbum]

How long will your fixed asset position take you?

just about long enough to get me a job.

 

[OAG]

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.

 

[bbbamI]

3 1/2 years living expenses in cash. 6 years bare bones.

 

[Rich_by_the_Bay]

12 years at subsistence level, but at full level if I were working part-time. Full SS in about 6 years.

 

[Poundkey]

5 years in cash/CDs.....another 5 in my bond fund.

 

[CyclingInvestor]

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.

 

[grumpy]

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.

 

[kumquat]

About 8 times current spending. With dividends, interest and a 5K CPP, should last 12 years or more if we have to lower lifestyle.

 

[accountingsucks]

I'm at about 5 years and 33 years old.

 

[DangerMouse]

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.

 

[ejman]

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.

 

[skyline]

2 years cash, 3 years more in bonds...

 

[2B]

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.

 

[davemartin88]

About 3-4 years, FI?RE'd last Friday, how's that for timing, LOL!

 

[Zathras]

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)

 

[Geoffrey]

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.