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Old 05-07-2021, 06:00 PM   #121
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OP considering I'm doing essentially the same thing in preparation for retiring next year I think your plan is brilliant.

I have a pension and have accumulated 5 years in cash above that for anticipated living expenses. I'll likely put some into Ally or Marcus so it is not earning nothing.

Being able to go 5 years without having to sell equities for expenses and also having cash to buy equities on sale if a correction happens is a double win.
Thanks for sharing Beernutzbob. It is good to hear that I am not alone in my thinking. Ally and Marcus are where my $ sit also.
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Old 05-07-2021, 06:11 PM   #122
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We also have over $1M in cash and equivalents. Want to have a cushion in case the market turns bearish for an extended period. Still have plenty in the stock market to benefit from the growth. In five year we’ll both be taking social security at 70, but we can take it earlier if the bear shows up.
This is my thinking also. If the market is going to be great in the next 5 years, then I don't have $ problem. If it will be bad, I can hang on to my shares (if not buying more) during the next several years. I assure DW we won't have $ problem once we fired, so this is my escape route just in case
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Old 05-07-2021, 06:14 PM   #123
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I went back and looked at my notes and i was looking at Rule 72t. I never looked at rule 55.

Rule 72(t) allows penalty-free withdrawals from IRA accounts and other tax-advantaged retirement accounts like 401(k) and 403(b) plans. ... This rule allows account holders to benefit from their retirement savings before retirement age through early withdrawal without the otherwise-required 10% penalty.
You are correct on the 72t. Just keep in mind that you will need to withdraw the same amount at least 5 years or until 59.5 which ever is longer
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Old 05-07-2021, 06:36 PM   #124
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OP's strategy is a very good one IMO. I'm heavy in cash also, for the long haul of down times, about 12% of total portfolio and 88% in the markets. More then most would have in what I have gathered from ER members and not the norm. It also is dry powder to buy in down turn in the market, and a plus to not having to sell stock to live.
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Old 05-07-2021, 06:41 PM   #125
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OP's strategy is a very good one IMO. I'm heavy in cash also, for the long haul of down times, about 17% of total portfolio and 83% in the markets. More then most would have in what I have gathered from ER members and not the norm. It also is dry powder to buy in down turn in the market, and a plus to not having to sell stock to live.
But you said you never rebalanced in your years of investing.
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Old 05-07-2021, 06:44 PM   #126
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But you said you never rebalanced in your years of investing.
I caught that as well
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Old 05-07-2021, 07:31 PM   #127
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NW-Bound/Fermion >>> LOL you guys are jonnie on the spot! Well I never have bought from my cash but it is an option and a plus to have that cash roll.

I have never rebalanced in over 40 years, but I could/might buy more equity if it got low and stayed there awhile. I would rather buy land then invest in more stocks this time in my life.

I guess I never thought of buying more as rebalancing but I'm not very fluent in finances and do things an unorthodox way.

Thanks LOL!!
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Old 05-07-2021, 07:54 PM   #128
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Many posters are afraid of being called market timers, so instead of saying buying low, they say they "rebalance" to bring their stock AA back to their set point.

I have no qualm about declaring myself a market timer and a stock picker too. I buy and sell whenever and whatever I want, if I feel like it.

I want to buy low/sell high, and when I am successful I stabilize the market by the contrarian moves. When people panic and want to get out, I help them out by buying their shares for them and give them cash. When people clamor to buy, buy, buy, I sacrifice my shares to them. Without people buying low, the market will go lower. If nobody sells high the market will become a tulip mania.

As the late Sir Templeton said, he did the above to help people. I try to do the same, although it is not easy to get it right all the time. I am still learning and trying, being a nice guy that I am.
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Old 05-07-2021, 08:28 PM   #129
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^ See, how uneducated I am about all this. I honestly never would have even considered that as rebalancing. I never have done it, but it maybe tempting just because I do have some cash to do so. I see now that I'm well funded in cash to survive a long time, maybe longer then I have time.
As an accumulator through my investing years I bought and never really knew what the market was doing. I beleive you experts call that dollar cost averaging. I'm learning slowly but catching on!!

I will let you know if I rebalance, I know what it means now. Thanks NW-Bound
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Old 05-07-2021, 08:37 PM   #130
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Nah, if what you have been doing all these years, or rather not doing anything , is good and gets you to this point, why change?

I am on the other hand a tinkerer and experimenter, and I like to fine-tune my technique. Maybe it will work better, maybe worse. The main point is I enjoy what I am doing, and if it does not work and costs me too much money, then I will stop and revert to doing nothing.
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Old 05-08-2021, 02:25 PM   #131
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^ See, how uneducated I am about all this. I honestly never would have even considered that as rebalancing. I never have done it, but it maybe tempting just because I do have some cash to do so. I see now that I'm well funded in cash to survive a long time, maybe longer then I have time.
As an accumulator through my investing years I bought and never really knew what the market was doing. I beleive you experts call that dollar cost averaging. I'm learning slowly but catching on!!

I will let you know if I rebalance, I know what it means now. Thanks NW-Bound
I have often beat-up on myself because I've been a lousy investor. But, since I've been a good saver, I have "enough." You clearly have "enough" so who cares if we did it "right?"

Enjoy!
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Old 05-08-2021, 02:38 PM   #132
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I have often beat-up on myself because I've been a lousy investor. But, since I've been a good saver, I have "enough." You clearly have "enough" so who cares if we did it "right?"

Enjoy!
That is right! The one thing I did right was to save and invest the rest took care of itself. It least I got one thing right, and won doing it my way. Lol

Thanks Koolau
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Old 05-08-2021, 03:09 PM   #133
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I don't know all the things that Street did or did not do, but a guy who has a WR as low as 0.5% has a lot that others may envy.
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Old 05-10-2021, 02:42 PM   #134
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Our 75% stocks 25% cash allocation now has has just above 600k in cash. Feels fine to me, no idiot feelings.
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Old 05-10-2021, 02:55 PM   #135
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Our 75% stocks 25% cash allocation now has has just above 600k in cash. Feels fine to me, no idiot feelings.
Yep! Hard to call anyone with that much money an idiot, in my humble opinion. Lots of folks would LOVE to be THAT idiot!
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Old 05-10-2021, 06:15 PM   #136
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Our 75% stocks 25% cash allocation now has has just above 600k in cash. Feels fine to me, no idiot feelings.
We have about $350,000 in cash right now, and I don't consider myself as an idiot. Others may have another opinion, but I don't live to gleam in the eye of others.
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Old 05-10-2021, 06:33 PM   #137
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100k in cash for us.
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Old 05-19-2021, 09:26 PM   #138
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Why not a MM fund like PVOXX? That’s where mine is.
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Old 05-20-2021, 04:10 PM   #139
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We have way more than $600k in cash and we sleep like babies at night
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