Originally Posted by brewer12345
I think most retirees here have a cushion of 2 to 7 years' worth of living expenses in cash or bonds taht they use first. Every year, most use whatever cash the portfolio throws off (interest, dividends, etc.) and then rebalance to their target allocations, reserving as much cash as they need to top up the "buffer" of cash and bonds.
Yes - just to confirm your statement (that's what I do).
Did my "sell" in Dec '07 to fund my gross budget for '08.
I keep this in Fidelity's IMA account and transfer to my bank accounts (from where I pay bills) once a month.
Current cash is at 2-3 years (beyond the '07 "bucket").
Only "dumb thing" I did this year was to pay the Federal tax in January. Being ER'ed less than a year, I thought you had to do the quarterly tax thing, and I thought I would be "smart" to eliminate the "hassle". Now I know I don't have to make any payment (at all) till year end. Next year, I'll schedule the tax payment (one transaction via Fidelity) in December '09.
You always learn something on these boards!