Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
On the day you retired...
Old 08-29-2014, 11:46 AM   #1
Thinks s/he gets paid by the post
jIMOh's Avatar
 
Join Date: Apr 2007
Location: Milford, OH
Posts: 2,085
On the day you retired...

What was your cash position on the day you retired?

2 years expenses in cash?
4 years?
same allocation as it was the day before you retired?

As you progressed through retirement, did you lower or raise the cash position as a multiple of expenses?
__________________

__________________
Light travels faster than sound. That is why some people appear bright until you hear them speak. One person's stupidity is another person's job security.
jIMOh 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 08-29-2014, 11:52 AM   #2
Full time employment: Posting here.
old woman's Avatar
 
Join Date: Dec 2005
Posts: 551
I didn't have any cash same as the day before retirement. My final paycheck went to income taxes and 401K ROTH so was zero exactly since I did my own check.
__________________

__________________
old woman is offline   Reply With Quote
Old 08-29-2014, 12:04 PM   #3
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,822
Quote:
Originally Posted by jIMOh View Post
What was your cash position on the day you retired?

2 years expenses in cash?
4 years?
same allocation as it was the day before you retired?

As you progressed through retirement, did you lower or raise the cash position as a multiple of expenses?
On the day I retired in 2009, I had 4.9 years' expenses in cash (using my 2010 spending as the definition of a year's expenses). It was the same as the day before I retired because it took months for my "retirement goodies" (pay for unused vacation time and so on) to show up.

I lowered my cash position a little as I progressed through retirement, although I right now I happen to have 5.5 years' expenses in cash (using my 2013 spending as the definition of a year's expenses). I am thinking of possibly moving to a nicer house if I ever see one I like better than the one I have. So, I like having a lot of cash just in case I need to pounce on a house.

I don't think this much cash is necessary, though.
__________________
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 08-29-2014, 12:42 PM   #4
Recycles dryer sheets
Theseus's Avatar
 
Join Date: Aug 2013
Posts: 484
Quote:
Originally Posted by jIMOh View Post
What was your cash position on the day you retired?
I made sure to have enough in my wallet to buy my [ex]coworkers some beer at the local sports bar that afternoon.

Quote:
Originally Posted by jIMOh View Post
As you progressed through retirement, did you lower or raise the cash position as a multiple of expenses?
FWIW. I've never been one to pay the least bit of attention to rules of thumb for having available cash. And it always seemed to me, that if I were to bury anything in the back yard with the expectation it would hold value, cash isn't going to work very well for that. Not having a paycheck to rely on for income has given me some pause, but now that we are getting our retirement income streams set up and flowing I really don't anticipate doing things much differently.
__________________
Theseus is offline   Reply With Quote
Old 08-29-2014, 01:05 PM   #5
Full time employment: Posting here.
 
Join Date: Mar 2011
Posts: 534
I had probably 3-4 years. I also had/have another 4-5 years in ibonds which some people think of as cash.
__________________
jon-nyc is offline   Reply With Quote
Old 08-29-2014, 01:23 PM   #6
Recycles dryer sheets
 
Join Date: May 2011
Location: Maple Valley
Posts: 464
Hmm, My DH is getting ready to take the plunge. I was thinking of 2 years worth of expenses as just in case.
__________________
kimcdougc is offline   Reply With Quote
Old 08-29-2014, 01:27 PM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,615
I had no cash the day I retired. I don't believe in cash unless it return 5% or more.

Several studies have shown that one shouldn't have any cash when they retire because it is a drag on portfolio return. Cash is simply a mental crutch that some folks use. But if you are one of those folks, then by all means have some cash, but it will cost you.
__________________
LOL! is offline   Reply With Quote
Old 08-29-2014, 01:47 PM   #8
Recycles dryer sheets
 
Join Date: Oct 2008
Posts: 217
Well when I retired they gave us our regular salary for a year,plus my pension started
the next day, so actually had more money coming in than if I was working,at least for
one year. Bridged me until I could collect SS.
Old Mike
__________________
mf15 is offline   Reply With Quote
Old 08-29-2014, 01:50 PM   #9
Thinks s/he gets paid by the post
 
Join Date: Nov 2009
Posts: 3,854
On the day I retired, I had just faxed 10 pages of instructions to my 401k/ESOP plan administrator to tell them how to liquidate my holdings. I was using NUA to liquidate the company stock, so a condition for doing that was to empty out the rest of my holdings in the plan. I did a direct rollover of most of the non-company-stock holdings into an IRA while cashing out the small after-tax contributions I had in the plan. I also received my last paycheck which included some unused vacation time I did not know I even had.

A few days later, I had a lot of cash in my bank account ready to be invested in the big bond fund which has been generating monthly dividends to pay my bills ever since. A week later, after I received the trustee-to-trustee rollover check from the admin, I visited my Fidelity office to invest the whole shebang. But for a few days I had about 14 years of expenses in cash sitting in the bank. So, that's my answer - 14 years.
__________________
Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.

"I want my money working for me instead of me working for my money!"
scrabbler1 is offline   Reply With Quote
Old 08-29-2014, 02:47 PM   #10
Moderator
MBAustin's Avatar
 
Join Date: Jul 2010
Posts: 4,146
On the day I retired, we probably had less than 6 months living expenses in the bank. But a month later we had 3+ years because I got my final paycheck (including unused vacation pay) and my deferred compensation payout (which unfortunately I had to take immediately as a lump sum because I was younger than 62).
__________________
"One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute." William Feather
----------------------------------
ER'd Oct. 2010 at 53. Life is good.
MBAustin is online now   Reply With Quote
Old 08-29-2014, 04:02 PM   #11
Recycles dryer sheets
 
Join Date: Jan 2014
Posts: 79
I have not retired yet, but plan on it in the next year. I don't plan on having cash in the traditional sense. ($$ in checking, savings or CD) There will be a pension for the basics and I will have a couple of years equivelent in I-bonds that I could cash if needed.
__________________
Palmtree is online now   Reply With Quote
Old 08-29-2014, 04:28 PM   #12
Thinks s/he gets paid by the post
sengsational's Avatar
 
Join Date: Oct 2010
Posts: 3,815
1.5 years of cash at retirement, 6 years of stable value.

Today I'm at about 2 years of cash, but I've been down to less than a year's worth. A recent rebalance pushed me back up.

Same asset allocation targets before and after retirement.
__________________
sengsational is offline   Reply With Quote
Old 08-29-2014, 04:53 PM   #13
Moderator
rodi's Avatar
 
Join Date: Apr 2012
Location: San Diego
Posts: 8,796
I retired in June and made sure I had cash enough to cover through the end of this year, and next year. So 1.5 years of the withdrawal amount. It's not my entire spending budget - since we have rental income and DH gets SS... but it's still a chunk.

I have a small inherited IRA and will take an RMD before the end of the year - rather than rolling that to the taxable account and reinvesting, I plan on setting that aside for some planned home improvements.
__________________
rodi is offline   Reply With Quote
Old 08-30-2014, 07:50 AM   #14
Full time employment: Posting here.
 
Join Date: Feb 2008
Posts: 920
Quote:
Originally Posted by LOL! View Post
Several studies have shown that one shouldn't have any cash when they retire because it is a drag on portfolio return.
Couldn't one take this further and say everyone's portfolio should be 100% small cap stocks since they return more over time? Anything would be a drag on portfolio.
__________________
tuixiu is offline   Reply With Quote
Old 08-30-2014, 08:07 AM   #15
Thinks s/he gets paid by the post
 
Join Date: Feb 2013
Location: Toronto
Posts: 1,414
Quote:
Originally Posted by LOL! View Post
I had no cash the day I retired. I don't believe in cash unless it return 5% or more.

Several studies have shown that one shouldn't have any cash when they retire because it is a drag on portfolio return. Cash is simply a mental crutch that some folks use. But if you are one of those folks, then by all means have some cash, but it will cost you.
Pretty much like this. I'm sure that I had some cash in some accounts as dividends came in or that just hadn't been allocated yet but it wasn't purposeful and I didn't feel then need to have a pile of money lying around doing nothing.
__________________
6miths is online now   Reply With Quote
Old 08-30-2014, 08:11 AM   #16
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,387
At the time I retired we had a little less than a year's worth of expenses in cash. I later decided to change my AA from 60/40/0 to 60/34/6 with the 6 representing about 2 years of withdrawals. In that first year I took advantage of 0% capital gains rate and built up our cash position.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
pb4uski is online now   Reply With Quote
Old 08-30-2014, 09:27 AM   #17
Thinks s/he gets paid by the post
Car-Guy's Avatar
 
Join Date: Aug 2013
Location: Citizen of Texas
Posts: 2,465
When I read the original posters questions, I thought cash was what you had in your checking account(s). As I read though some of the responses I see some folks consider other things as cash. ibonds, CD's, other.

To me cash is what I have in my checking accounts..... To support my initial planned retirement lifestyle, I started off with an estimated 4 to 5 years of cash. I've only been retired a few years now and I have not adjusted my AA yet to maintain that. As it is turning out in my case, I'll probably keep a years worth of cash in my checking accounts.
__________________
Car-Guy is offline   Reply With Quote
Old 08-30-2014, 09:42 AM   #18
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,406
When I retired almost half my portfolio was in cash and another big chunk was in auction rate muni funds. Now we keep the current year budget in cash, and in short / med term munis one year of budget together with large planned expenses and committed funds.
__________________
MichaelB is offline   Reply With Quote
Old 08-30-2014, 10:07 AM   #19
Recycles dryer sheets
 
Join Date: Apr 2011
Location: Castro Valley
Posts: 400
Started at age 51 (2009) with about 10 years cash. Bought 3 rental properties (2010-2012) and have been living off the cash and rental income.

Today, 5 years later, I have 6 years cash (lower yearly cash needs due to rental income).

By the time I'm 62 (start Social Security), I expect to have about 1 year cash.
__________________
jkern is offline   Reply With Quote
Old 08-30-2014, 11:48 AM   #20
Full time employment: Posting here.
 
Join Date: Jan 2008
Posts: 882
probably a couple of weeks worth of spending
__________________

__________________
jebmke 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
How do you know you are retired if you are still working ? Moemg Life after FIRE 19 12-19-2010 08:11 PM
Day to day happiness peaks at $75k? midlifeguy FIRE and Money 45 09-17-2010 12:40 PM
The new baby is home!! St.Patty's Day is his B-Day!! thefed Other topics 20 03-21-2008 04:48 PM
Staying the course is a day-to-day struggle azanon Young Dreamers 37 01-17-2006 03:05 PM

 

 
All times are GMT -6. The time now is 06:35 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.