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How long will your fixed asset position take you?
10-06-2008, 08:41 AM
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#1
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Full time employment: Posting here.
Join Date: Jun 2008
Posts: 534
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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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10-06-2008, 10:08 AM
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#2
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Thinks s/he gets paid by the post
Join Date: Jul 2006
Posts: 1,901
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Depending upon how dividends hold up I can probably go 14+ years.
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“I guess I should warn you, if I turn out to be particularly clear, you've probably misunderstood what I've said” Alan Greenspan
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10-06-2008, 10:11 AM
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#3
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,022
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At current spending levels, 4+ years if I start SS at age 62.
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Numbers is hard
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10-06-2008, 10:21 AM
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#4
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Moderator Emeritus
Join Date: Jun 2007
Location: At The Cafe
Posts: 6,873
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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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10-06-2008, 10:28 AM
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#5
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,148
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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.
Audrey
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10-06-2008, 10:34 AM
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#6
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Thinks s/he gets paid by the post
Join Date: Jul 2005
Posts: 4,366
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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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10-06-2008, 10:38 AM
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#7
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Thinks s/he gets paid by the post
Join Date: Mar 2006
Location: Houston
Posts: 4,337
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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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The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
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10-06-2008, 10:40 AM
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#8
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Moderator Emeritus
Join Date: Dec 2002
Location: Oahu
Posts: 26,860
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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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Co-author (with my daughter) of “Raising Your Money-Savvy Family For Next Generation Financial Independence.”
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10-06-2008, 10:40 AM
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#9
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Full time employment: Posting here.
Join Date: Apr 2006
Posts: 944
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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....
Oh, Mommie!! Said with Seinfelds Kramer flair...........
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Freed at 49. You only live once - live it
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10-06-2008, 11:26 AM
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#10
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Thinks s/he gets paid by the post
Join Date: Feb 2006
Posts: 3,895
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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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"off with their heads"~~dr. joseph-ignace guillotin
"life should begin with age and its privileges and accumulations, and end with youth and its capacity to splendidly enjoy such advantages."~~mark twain - letter to edward kimmitt 1901
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10-06-2008, 11:29 AM
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#11
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Thinks s/he gets paid by the post
Join Date: Jun 2006
Location: Central, Ohio, USA
Posts: 2,635
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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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Vietnam Veteran, CW4 USA, Retired 1979
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10-06-2008, 12:04 PM
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#12
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2006
Location: Collin County, TX
Posts: 9,296
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3 1/2 years living expenses in cash. 6 years bare bones.
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There's no need to complicate, our time is short..
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10-06-2008, 12:20 PM
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#13
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Moderator Emeritus
Join Date: Feb 2006
Location: San Francisco
Posts: 8,827
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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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Rich
San Francisco Area
ESR'd March 2010. FIRE'd January 2011.
As if you didn't know..If the above message contains medical content, it's NOT intended as advice, and may not be accurate, applicable or sufficient. Don't rely on it for any purpose. Consult your own doctor for all medical advice.
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10-06-2008, 02:56 PM
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#14
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Recycles dryer sheets
Join Date: Apr 2006
Location: Hardscrabble Texas
Posts: 372
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5 years in cash/CDs.....another 5 in my bond fund.
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.....#.....
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10-06-2008, 05:06 PM
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#15
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Thinks s/he gets paid by the post
Join Date: Jul 2005
Location: Los Angeles area
Posts: 1,708
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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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learn, work, save, invest, fire
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10-06-2008, 07:21 PM
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#16
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Thinks s/he gets paid by the post
Join Date: Jul 2004
Posts: 1,321
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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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10-06-2008, 07:26 PM
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#17
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Thinks s/he gets paid by the post
Join Date: Nov 2005
Location: North of Montana
Posts: 2,769
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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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There are two kinds of people in the world: those who can extrapolate conclusions from insufficient data and ..
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10-06-2008, 07:28 PM
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#18
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Recycles dryer sheets
Join Date: Jan 2006
Posts: 346
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I'm at about 5 years and 33 years old.
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10-06-2008, 07:44 PM
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#19
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Thinks s/he gets paid by the post
Join Date: Jan 2007
Location: Silicon Valley
Posts: 1,812
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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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I be a girl, he's a boy. Think I maybe FIRED since July 08. Mid 40s, no kidlets. Actually am totally clueless as to what is going on with DH.
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10-06-2008, 08:35 PM
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#20
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Thinks s/he gets paid by the post
Join Date: Feb 2007
Posts: 2,526
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Quote:
Originally Posted by 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).
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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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