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Old 09-17-2017, 03:20 PM   #41
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I pay everything with a credit card. If I need to pay a credit card bill, then I sell something in the portfolio and have the proceeds show up in my checking account and use online billpay to pay the credit card.


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Did you employ this method in 2007-2009 during the downturn? Selling equities back then was a bit costly. Or is this post crash. I wasnt in here back then so I dont know how your portfolio was handled back then.
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Old 09-17-2017, 03:23 PM   #42
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Total investable assets - several years worth, probably more than five but a good chunk of this is in high yielding CDs and iBonds. I have enough invested in equities and bonds to meet long term needs (knock on wood) so I don't feel the need to reduce my cash holdings.

I am retired.
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Old 09-17-2017, 03:23 PM   #43
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I just turned 60 but have done the math and it makes sense for me to wait till 65 before starting CPP.
I took it at 60......did a rough calculation, the exact details of which I can't quite recall, but it appeared that the break even point before those who started at 65 pulled ahead was 75 or 85.........since I've already outlasted all the (known) males on my paternal side I thought I'd emulate the song and "Take the money and run".

So far, so good.
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Old 09-17-2017, 03:29 PM   #44
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The max I keep in cash in my portfolio is 12 months. Right now I am at 8 months. I am only including pure cash. I have many more months worth in near cash (CDs, I-bonds, and short term bonds).
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Old 09-17-2017, 03:35 PM   #45
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Did you employ this method in 2007-2009 during the downturn? Selling equities back then was a bit costly. Or is this post crash. I wasnt in here back then so I dont now how your portfolio was handled back then.
I used the same method but was selling bonds -- both to transfer money to checking account and to re-balance to my target equity percent. When the market tanks, unless you have very high or 100% equity you would normally not be selling equity.

Caveat - during '08 and '09 I was selling massive amounts of equity and buying more massive amounts of equity to harvest losses for tax purposes. In terms of allocation management I generally treat that as a non-sale but rather a net purchase.
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Old 09-17-2017, 03:43 PM   #46
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I plan to go into retirement with 5 years of cash that meets my target SWR for those years, so that I am not required to sell equities.
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Old 09-17-2017, 03:46 PM   #47
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4 years worth.
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Old 09-17-2017, 04:17 PM   #48
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6-7 months in cash/cash equivalents.
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Old 09-17-2017, 04:17 PM   #49
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If we are counting CD's the same as cash in this thread (checking, etc) then I have a lifetime of cash available at my current annual spend rates. As I've explained in other threads, my cash/CD's are in bucket #1 which should last me until my final days or at least 20 yrs. Bucket #2 is for investments, speculation and/or whatever.
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Old 09-17-2017, 05:06 PM   #50
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Currently about 11 months, but I am slowly spending that down.

My plan is to keep cash on hand between 2-8 months, refilling it about twice per year from my investments.

Newly FIREd about 2 years.
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Old 09-17-2017, 05:20 PM   #51
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(Cash+I-Bond) / (last 12-month expenses) = 7.5 years.
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Old 09-17-2017, 05:31 PM   #52
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I used the same method but was selling bonds -- both to transfer money to checking account and to re-balance to my target equity percent. When the market tanks, unless you have very high or 100% equity you would normally not be selling equity.

Caveat - during '08 and '09 I was selling massive amounts of equity and buying more massive amounts of equity to harvest losses for tax purposes. In terms of allocation management I generally treat that as a non-sale but rather a net purchase.
Ok, Hahaha, ty never thought about selling the bond part, thanks.!
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Old 09-17-2017, 05:32 PM   #53
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Did you employ this method in 2007-2009 during the downturn? Selling equities back then was a bit costly. Or is this post crash. I wasnt in here back then so I dont know how your portfolio was handled back then.
I switched from full-time work to half-time work in 2007, so my withdrawals were lower.

If I sold equities, then I simply bought equities in another account by exchanging from bond funds. And I certainly rebalanced in 2007-2009 by exchanging from bond funds to equity funds all along the drop. In the same way, I rebalance from equities to bonds when stocks go up beyond my target allocation.

In essence selling is never costly for me.
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Old 09-17-2017, 05:33 PM   #54
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If we are counting CD's the same as cash in this thread (checking, etc) then I have a lifetime of cash available at my current annual spend rates.
, A lifetime of cash, Thats awesome. I think you have definitely arrived.
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Old 09-17-2017, 05:34 PM   #55
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I switched from full-time work to half-time work in 2007, so my withdrawals were lower.

If I sold equities, then I simply bought equities in another account by exchanging from bond funds. And I certainly rebalanced in 2007-2009 by exchanging from bond funds to equity funds all along the drop. In the same way, I rebalance from equities to bonds when stocks go up beyond my target allocation.

In essence selling is never costly for me.
Ahh, This is something I could definitely live with. Thanks Im not in the withdrawal stage and I probably should be in the re-balance stage. I think back when I formulated this whole plan I was going to re-balance once a year during Christmas week.
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Old 09-17-2017, 05:37 PM   #56
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Retired and currently reinvesting Divs as we have approx. 12 mos. of cash in checking/savings at the present time. Savings at Discover 1.15%
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Old 09-17-2017, 05:59 PM   #57
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Do CDs count as cash ? If yes I've too much cash on hand (~10% of 800k). Otherwise I have about ~5% and even that I believe is too much. That tells that I'm not doing a good job making my money work harder :0
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Old 09-17-2017, 06:00 PM   #58
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Retired and currently reinvesting Divs as we have approx. 12 mos. of cash in checking/savings at the present time. Savings at Discover 1.15%
Me too.. Savings spread at Discover, Ally, and Capital One (little less than other two).
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Old 09-17-2017, 06:05 PM   #59
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3.5 to 4 years
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Old 09-17-2017, 06:15 PM   #60
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As usual I cant post a simple answer, I feel compelled to elaborate. I have on auto pilot every WEEK, $ X,XXX going into equities from my Vanguard Intermediate-Term Investment-Grade Fund Admiral Shares. They currently have about 6 years worth of living expenses. Add to this my checkbook with about 2 years living expenses. This checkbook gets about $3000 a month more than we spend( from my pension checks). I think we get a big fat zero interest on this thing. So about 8 years cash and growing every month.

Im glad someone brought this up, I need to see if a liquid CD would be worth looking into, it might, after taxes amount to a nice surf & turf dinner every year at some swanky joint.
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