View Poll Results: Cash on hand at beginning of ER?
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Less than 6 months of living expenses (LE)
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12 |
11.11% |
Between 6 mos up to 1 year of LE
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10 |
9.26% |
Over 1 and up to 2 years of LE
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23 |
21.30% |
Over 2 and up to 3 years of LE
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11 |
10.19% |
Over 3 and up to 4 years of LE
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16 |
14.81% |
Over 4 and up to 5 years of LE
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5 |
4.63% |
Over 5 years of LE
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31 |
28.70% |
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11-29-2012, 05:05 PM
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#21
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Full time employment: Posting here.
Join Date: Sep 2011
Location: Bushnell
Posts: 607
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2 years expenses, which I replenish with 1 years expenses annually with dividends and gains.
I also have several years expenses worth of iBonds which serves as an additional emergency cash cushion.
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12-02-2012, 04:39 AM
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#22
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2005
Posts: 6,115
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with 1 year 9 months to go before i pull the plug at 62 i just finished restructuring our plan.
as it stands right now we have about 3-4 years withdrawals in cash.
thats not total living expenses since we have a small pension ,real estate income , and my wifes ss check but not mine coming in as i may hold off..
our allocations are 100% various bond funds right now with some bond funds actually acting as slightly less aggressive equity funds. up 10% this year and generating about 3- 3-1/2% income.
that will stay as our model until rates p/u at which time different allocations will be made with more going back to equities.
since projections say we only need about 2%-2-1/2% or so from our nest egg we have the luxury of being a little less aggressive in our model
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12-02-2012, 05:46 AM
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#23
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Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,581
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We currently keep in cash & short term fixed income our current year budget, one additional year budget and enough additional cash to fund all commitments we have made (weddings, etc) and significant home repair.
When I retired our portfolio was >50% cash. Some was invested during '00, and the result was so encouraging I plowed the rest in '01, just in time to catch the very top and watch it lose 1/4 in no time flat. The good old days...
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12-02-2012, 05:56 AM
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#24
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2005
Posts: 6,115
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you sound like as good a market timer as me.
i closed on my first rental property 10 days before the 1987 stock market crash . of course the co-op was in nyc . when the smoke cleared i was down 30% right out of the box as real estate plunged here for years to come.
of course today things bounced back beyond our wildest expectations and if i wasnt telling this story from time to time i wouldnt even have rembered it happened.
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12-02-2012, 06:05 AM
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#25
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Moderator
Join Date: Feb 2010
Location: Flyover country
Posts: 25,198
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Quote:
Originally Posted by Alan
I had less than 2 years in living expenses, but I had private pensions that covered 70% of living expenses so the chances of needing that cash was, I hoped, quite small.
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This is my case, too. "Living expenses" is one thing, and "cash needed for living expenses" is another.
__________________
I thought growing old would take longer.
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12-02-2012, 01:20 PM
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#26
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Full time employment: Posting here.
Join Date: Dec 2005
Posts: 567
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I haven't retired yet but don't see needing a lot of money sitting in cash. My SS and rental income should be fine month to month so I only need for car insurance, property taxes and wants from savings. I might keep a year or worth of taxes and insurance say 10K total or about 1/3 year LE plus maybe some money to fix up my house to sell. I will move someplace cheaper probably so cost might go down.
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12-02-2012, 01:41 PM
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#27
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Thinks s/he gets paid by the post
Join Date: Jul 2006
Posts: 1,901
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I include a CD ladder as cash.
__________________
“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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12-02-2012, 03:38 PM
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#28
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Thinks s/he gets paid by the post
Join Date: Jan 2008
Posts: 1,653
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Keep no cash. Sell (usually bonds these days) to eat.
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12-02-2012, 03:59 PM
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#29
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2004
Location: South Texas~29N/98W Just West of Woman Hollering Creek
Posts: 6,671
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I do not recall the amount, so I guessed between 6-12 months. It's about 2 years worth of expenses now.
__________________
Part-Owner of Texas
Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx
In dire need of: faster horses, younger woman, older whiskey, more money.
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