Meadbh
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Jul 22, 2006
- Messages
- 11,401
I'm not bailing out - I'm planning to live off my salary while I'm still working (3 years), then cash for 4 years, then proceeds from real estate investments for 3 years, until my equities reach an all time high (hopefully in 10 years or so), and then start tapping them.
For those of us still working, it's important to keep this long term perspective. In my own case, my target RE date is/was 2013. This meltdown has been an important reminder to build liquidity, which I will do with future earnings. I'm currently low on cash so I am compromizing by reducing DCA to $2500 per month in dividend stocks and accumulating the remainder of my (tax deferred) savings in cash. At some point I may build a bond ladder with some of that. If I can maintain my current earning power and LBYM status, by 2013 I should have accumulated sufficient cash to carry me and the taxman/woman for another 4-5 years. One would certainly hope that markets would have improved 9-10 years from now. Otherwise we might just as well go live in a cave.
Friends are not forthcoming with detailed information. Thus far I'm not aware of anyone who has baled out of the markets, but many people have said they have stopped looking at their funds. People who have planned retirement dates in the near future appear to be sticking with their plans.