Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
How many years of cash/cash equilivents do you have now
Old 03-08-2009, 12:29 AM   #1
Recycles dryer sheets
 
Join Date: Jun 2007
Posts: 84
How many years of cash/cash equilivents do you have now

I would like 10 years of living expenses since I do not have a pension.

Anyone else?
__________________

__________________
Florida 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 Early-Retirement.org 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 03-08-2009, 01:03 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
youbet's Avatar
 
Join Date: Mar 2005
Location: Chicago
Posts: 9,965
Are you saying you're going for a 30% or so allocation to cash/cash equivalents? Sounds pretty high as a long term position.

Would you let that diminish as you go through retirement? Or replenish it and keep it at 10 years?
__________________

__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
youbet is offline   Reply With Quote
Old 03-08-2009, 01:09 AM   #3
Recycles dryer sheets
 
Join Date: Nov 2008
Posts: 111
Any ideas on Retirement Mutual Funds that have built in cash/bond/Stock mix that don't go down much in down market?
__________________
rsingh6675 is offline   Reply With Quote
Old 03-08-2009, 04:36 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2005
Posts: 5,414
i have 14 years of withdrawls in cash, and income stuff.... keep in mind thats 14 years of withdrawls not living expenses... there can be a difference if you have other income from social security,pension, rentals etc
__________________
mathjak107 is offline   Reply With Quote
Old 03-08-2009, 05:05 AM   #5
Dryer sheet aficionado
 
Join Date: Mar 2009
Location: Chippewa Falls, Wisconsin
Posts: 31
We can live 25 years on our cash. Of course that means a budget that burns through very little $. It's not what you got... it's what you spend.
__________________
sander06 is offline   Reply With Quote
Old 03-08-2009, 05:48 AM   #6
Thinks s/he gets paid by the post
Rambler's Avatar
 
Join Date: Jul 2007
Posts: 2,250
We keep 3 years of barebones cash, and with the munis we have and my planned muni additions (bonus), we would have barebones expenses in perpetuity, so long as the guvmint doesn't go completely out of business.

This would mean a lot of gardening, from which I get a lot of joy anyway, but it would mean essentially no travel, which I am looking forward to doing with DW. I'm learning still but it appears that longer term GO munis seem to be the safest, so that's where I'm headed.

Any extras are going into AA, GE, ED, a couple medical/pharmas, etc, that make things and pay dividends. The extras/travel will come from dividends, so long as they conyinue to be paid. Not retired yet, and I see this as a great time to buy...may have to buy for a long time, and wait for a while for values to come up, but I'm not too depressed.

R
__________________
Find Joy in the Journey...
Rambler is offline   Reply With Quote
Old 03-08-2009, 08:37 AM   #7
Moderator Emeritus
Rich_by_the_Bay's Avatar
 
Join Date: Feb 2006
Location: San Francisco
Posts: 8,827
If you truly mean cash equivalents (up to maybe short term federal bond fund) I carry about 7 years; throw in intermed fed bonds, TIPs and on up to Wellesley type funds, it's about 15 years.
__________________
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.
Rich_by_the_Bay is offline   Reply With Quote
Old 03-08-2009, 08:40 AM   #8
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,144
~10 years here including everything in Rich's bucket + SS.
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 03-08-2009, 09:25 AM   #9
Thinks s/he gets paid by the post
Bikerdude's Avatar
 
Join Date: Jul 2006
Posts: 1,901
Quote:
Originally Posted by mathjak107 View Post
i have 14 years of withdrawls in cash, and income stuff.... keep in mind thats 14 years of withdrawls not living expenses... there can be a difference if you have other income from social security,pension, rentals etc
Using the above as a model, I have 22 years (if div & int hold up) with a 3% inflation rate. My pension and SS (at the end of this year) will cover 65% of my living expenses. Just dumb luck that I'm turning 62 this year.

It should be noted that this would be a comfortable retirement not a luxury retirement. The latter would require capital gains.
__________________
“I guess I should warn you, if I turn out to be particularly clear, you've probably misunderstood what I've said” Alan Greenspan
Bikerdude is offline   Reply With Quote
Old 03-08-2009, 09:30 AM   #10
Recycles dryer sheets
 
Join Date: Nov 2008
Posts: 131
Everything is in cash or short term bonds at the moment. I'm waiting until stocks look like an attractive buy, then will diversify more.
__________________
Architect is offline   Reply With Quote
Old 03-08-2009, 09:30 AM   #11
Thinks s/he gets paid by the post
OAG's Avatar
 
Join Date: Jun 2006
Location: Central, Ohio, USA
Posts: 2,598
If SS and COLA'd "pension" income is counted as cash, or cash equivalent, I just have to keep breathing.
__________________
Vietnam Veteran, CW4 USA, Retired 1979
OAG is offline   Reply With Quote
Old 03-08-2009, 09:42 AM   #12
Thinks s/he gets paid by the post
Coach's Avatar
 
Join Date: Nov 2005
Location: Colorado, USA
Posts: 1,127
I'm at about 5 years of budgeted expenses in cash and equivalents.

Coach
__________________
Coach is offline   Reply With Quote
Old 03-08-2009, 09:47 AM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Moemg's Avatar
 
Join Date: Jan 2007
Location: Sarasota,fl.
Posts: 10,037
I now have ten years in cash and safe investments .I was at five years but last years market made me too crazy .
__________________
Moemg is offline   Reply With Quote
Old 03-08-2009, 09:49 AM   #14
Recycles dryer sheets
 
Join Date: Jan 2009
Posts: 170
8.51 years outside of retirement accounts.

Including retirements accounts 31.01 years.
__________________
Gpond is offline   Reply With Quote
Old 03-08-2009, 09:56 AM   #15
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Dawg52's Avatar
 
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 7,445
10 years.
__________________
Retired 3/31/2007@52
Full time wuss.......
Dawg52 is offline   Reply With Quote
Old 03-08-2009, 10:03 AM   #16
Recycles dryer sheets
 
Join Date: Nov 2005
Posts: 331
I'm ok, have pension, and about 20 plus years of cash to supplement it, I plan on moving to some foreign place, where ever that may be, who knows in 20 years, if I can't make it here.

Hmmm, maybe siberia will be the hot spot, cheap, plenty of moose meat, hot siberian babes, vodka. Not a bad place to check out.

Jug,
Comrade in arms
__________________
jug is offline   Reply With Quote
Old 03-08-2009, 10:29 AM   #17
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,939
Quote:
Originally Posted by sander06 View Post
We can live 25 years on our cash. Of course that means a budget that burns through very little $. It's not what you got... it's what you spend.
I couldn't agree more. These numbers are meaningless unless the level of spending is specified. So, I computed years at four different types of budget - - plush (the most I can imagine spending), nice (the minimum I am planning to spend in ER), current (less than that because I don't have the time to shop while working), and barebones.

If SS and pension both disappeared, and if there was zero inflation (ha!), then I have enough cash and cash equivalents for 11/14/20/27 years, for plush/nice/current/barebones budgets.

This is not counting my Wellesley or my %)^(*& VFSTX (Short Term Investment-Grade Bond Fund) holdings.

Obviously my financial plan is conservative, but actually it is not THIS conservative - - I have been influenced by recent market events. Although I haven't sold any equities lately, my AA right now is 38:62, whereas my plan is 45:55. Like many here I have lost a lot and I just don't have the guts to rebalance quite yet. Maybe in a few months.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities.

- - H. Melville, 1851
W2R is online now   Reply With Quote
Old 03-08-2009, 10:31 AM   #18
Recycles dryer sheets
 
Join Date: Feb 2006
Posts: 223
7 - 8 years with current spending but it could be longer if we really cut back, like sander06 said - it's what you spend
__________________
F-One is offline   Reply With Quote
Old 03-08-2009, 11:45 AM   #19
Full time employment: Posting here.
cardude's Avatar
 
Join Date: Feb 2006
Posts: 599
6.8 years at current spending, 10 yrs if we can sell the house and cut back on other stuff and wife gets the job she's trying for. Hope that's long enough to get us out of this hole.

My problem is, if we use up all our cash over 10 years, then we will be 100% stocks with no cushion.
__________________
cardude is offline   Reply With Quote
Old 03-08-2009, 11:51 AM   #20
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2006
Posts: 11,019
Quote:
Originally Posted by jug View Post
Hmmm, maybe siberia will be the hot spot, cheap, plenty of moose meat, hot siberian babes, vodka. Not a bad place to check out.
I think The Amazing Race is going to Siberia tonight (assuming your TV listings are the same as mine).
__________________

__________________
Meadbh is offline   Reply With Quote
Reply


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
5 years in cash free4now FIRE and Money 53 10-31-2008 07:29 AM
How many years of expenses in cash at retirement? Rich_by_the_Bay FIRE and Money 30 03-29-2007 07:52 PM
3-5 years cash in taxable or IRA? donheff FIRE and Money 10 03-12-2007 07:18 PM
How many years of expenses in cash Rich_by_the_Bay FIRE and Money 27 07-12-2006 02:52 PM
Would you tie up some cash for 7 years at 6%? ShokWaveRider FIRE and Money 7 01-02-2006 03:52 PM

 

 
All times are GMT -6. The time now is 05:56 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.