RoadRunner7
Dryer sheet wannabe
- Joined
- Feb 19, 2018
- Messages
- 16
I’ve heard varying opinions on how to create a Cash and asset allocation that works for early retirement, so I would like your opinion.
Here is my example:
Early Retirement 5 years before starting Social Security etc. With all expenses, plus some fun money and including health care, will need 80k per year over these 5 years.
Would you keep 5 year’s worth of 80 x 5 = 400k in high interest Money Markets, CD’s and short term bond funds since this will most likely all be used up in this 5 year window?
Or would you just put away 5 year’s worth of your estimated Social Security in short term accounts and take out what you need yearly from your investment portfolio, with say an extra 2 - 3 years of Cash in CD’s and High Interest money market accounts in case of a market down turn that will always be there?
Our any other thoughts that I'm missing.
Thanks for your feedback
Here is my example:
Early Retirement 5 years before starting Social Security etc. With all expenses, plus some fun money and including health care, will need 80k per year over these 5 years.
Would you keep 5 year’s worth of 80 x 5 = 400k in high interest Money Markets, CD’s and short term bond funds since this will most likely all be used up in this 5 year window?
Or would you just put away 5 year’s worth of your estimated Social Security in short term accounts and take out what you need yearly from your investment portfolio, with say an extra 2 - 3 years of Cash in CD’s and High Interest money market accounts in case of a market down turn that will always be there?
Our any other thoughts that I'm missing.
Thanks for your feedback