Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 01-01-2018, 12:54 PM   #61
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Car-Guy's Avatar
 
Join Date: Aug 2013
Location: Citizen of Texas
Posts: 6,328
Quote:
Originally Posted by audreyh1 View Post
There was a recent poll. There are plenty of folks here with high numbers of years in cash or fixed income.
True, this question seems to come up from time to time, (like many topics here) and honestly, I'm surprised that so many folks now to seem to keep a lot in cash. Especially with the market the way has been recently (or maybe that's why ) I've been visiting this site for well over 10 years now (only posting about half of that time) and it's my "impression" that the number of folks keeping a lot in cash is getting higher as time goes on. Or maybe it's just more are talking about it now.
Car-Guy is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 01-01-2018, 12:58 PM   #62
Thinks s/he gets paid by the post
 
Join Date: Jun 2003
Location: Florida's First Coast
Posts: 4,989
Quote:
Originally Posted by Car-Guy View Post
I've been visiting this site for well over 10 years now (only posting about half of that time) and it's my "impression" that the number of folks keeping a lot of cash is getting higher as time goes on. Or maybe more are talking about it.
Could this be age related? My tolerance for risk have been inversely proportional to my age.
__________________
"Never Argue With a Fool, Onlookers May Not Be Able To Tell the Difference." - Mark Twain
ShokWaveRider is offline   Reply With Quote
Old 01-01-2018, 01:02 PM   #63
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Car-Guy's Avatar
 
Join Date: Aug 2013
Location: Citizen of Texas
Posts: 6,328
Quote:
Originally Posted by ShokWaveRider View Post
Could this be age related? My tolerance for risk have been inversely proportional to my age.
Could be, or it could be a more receptive attitude on this forum to those who choose to manage their own money in such a manner, so they are opening up about it.
Car-Guy is offline   Reply With Quote
Old 01-01-2018, 01:10 PM   #64
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 30,502
Quote:
Originally Posted by Car-Guy View Post
Could be, or it could be a more receptive attitude on this forum to those who choose to manage their own money in such a manner, so they are opening up.
I think far more are willing to admit it now.

But certainly the high equities market is part of it. Many folks are reducing their equity exposure now out of concern for high stock valuations.
__________________
Retired since summer 1999.
audreyh1 is offline   Reply With Quote
Old 01-01-2018, 01:23 PM   #65
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Car-Guy's Avatar
 
Join Date: Aug 2013
Location: Citizen of Texas
Posts: 6,328
Quote:
Originally Posted by audreyh1 View Post
i think far more are willing to admit it now.
+1

Quote:
Originally Posted by audreyh1 View Post
but certainly the high equities market is part of it. Many folks are reducing their equity exposure now out of concern for high stock valuations.
+1
Car-Guy is offline   Reply With Quote
Old 01-01-2018, 02:11 PM   #66
Moderator
sengsational's Avatar
 
Join Date: Oct 2010
Posts: 8,537
Quote:
Originally Posted by mathjak107 View Post
the reason usually given is i don't want to sell stocks when they are down , but with a typical 40/60 to 60/40 mix you would not be selling selling if that is what plunged . you would be rebalancing bonds in to cash and perhaps even in to more stocks .

2008 saw most bond funds that were not proxies for stock like high yield actually go up . high quality long term treasuries were up about 40% .

total bond funds were up too .some like fidelity's had held to much in those cdo's but that was an isolated event . even my money market lost money because of it .

generally bonds pay more than cash does and they tend to rise when stocks take a bad hit unlike cash .
I urge anyone who thinks that their bond portfolio will go up at all, much less up 40%, do their own research on what happened in 2008. The bond fund I had available to me in my 401k was down 7% from 1/1/2008 to 2/28/2009. There are many funds that did better that can be cherry picked, but I had one bond fund to pick from. It was an index and not overly expensive fees, but it went down. The idea should be that bond funds will just go down less, certainly not the fairy tale that bonds go up when equities go down.
sengsational is offline   Reply With Quote
Old 01-02-2018, 12:50 AM   #67
Recycles dryer sheets
Cayman's Avatar
 
Join Date: Nov 2015
Posts: 289
28-30% cash and cash equivalents. Retired in 2017@50. We expect a WR of 2.6% or less in 2018.... we have enough dough to have fun, no need for us to move more cash to equities at this point.
Cayman is offline   Reply With Quote
Old 01-02-2018, 07:10 AM   #68
Thinks s/he gets paid by the post
 
Join Date: Sep 2014
Location: The Great Wide Open
Posts: 2,851
My 5 year cash stash will be reduced to a 4 year stash in about an hour, when I take my annul allotment. It will be up 50% from last year, but about 2.08% WR over all. I'm starting to get a good idea about this retirement thing after 39 months. We have been able to meet all expenses so far, so we're loosening the purse strings a little more. But remain cautiously optimistic with the new tax law and economy. FRA is still 6 years out.
Winemaker is offline   Reply With Quote
Old 01-03-2018, 04:46 AM   #69
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2005
Posts: 5,466
Quote:
Originally Posted by sengsational View Post
I urge anyone who thinks that their bond portfolio will go up at all, much less up 40%, do their own research on what happened in 2008. The bond fund I had available to me in my 401k was down 7% from 1/1/2008 to 2/28/2009. There are many funds that did better that can be cherry picked, but I had one bond fund to pick from. It was an index and not overly expensive fees, but it went down. The idea should be that bond funds will just go down less, certainly not the fairy tale that bonds go up when equities go down.
in 2008 what bond fund was down that you had ? i know my fidelity total bond was down about 5% but they got caught up in the toxic paper .

on the other hand my TLT long treasury bond fund was up 34%.

but in any case even with the fidelity bond fund being down in 2008 it still was not stocks that were sold when cash was created from rebalancing .
mathjak107 is offline   Reply With Quote
Old 01-03-2018, 09:49 AM   #70
Thinks s/he gets paid by the post
Live And Learn's Avatar
 
Join Date: Feb 2012
Location: Tampa Bay Area
Posts: 1,863
I assume that my dividends will be cut in half and from there keep 5 years of cash and short term bonds. I exclude this amount when I calculate WR. It just makes me sleep better. I know I am losing money but sleep is priceless.
__________________
"For the time being no discipline brings joy, but seems grievous and painful; but afterwards it yields a peaceable fruit of righteousness to those who have been trained by it." ~
Hebrews 12:11

ER'd in June 2015 at age 52. Initial WR 3%. 50/40/10 (Equity/Bond/Short Term) AA.
Live And Learn is offline   Reply With Quote
Old 01-03-2018, 11:18 AM   #71
Thinks s/he gets paid by the post
gayl's Avatar
 
Join Date: Jun 2004
Location: Diablo Valley (SF Bay Area)
Posts: 2,229
Caveat : I have a govt pension and it's 88% funded

My ex-advisor at Schwab (level A but we had a disagreement in philosophy) suggested enough to carry my kids / grands 2 years ' just in case.' Did I state she's my ex-advisor? The newbie supposed to handle accounts > 250k stated 1 year travel 'just in case' as I can use my dividends if needs be

My take: 1 year cash, 1 year bonds no frills living expenses 'just in case'
gayl is offline   Reply With Quote
Old 01-03-2018, 11:49 AM   #72
Recycles dryer sheets
 
Join Date: Dec 2016
Location: New York
Posts: 80
Planning to retire next year. 55/45. I have 13 yrs expenses in fixed income (1 yr savings, 3 yrs CDs, and the balance in bond fund) based on current expenses. That could easily stretch to 15+yrs. Not taking SS for 19 yrs. Will keep 10 yrs in expenses in fixed income until SS and then let equities glide up.
HMMY is offline   Reply With Quote
Old 01-10-2018, 09:08 AM   #73
Recycles dryer sheets
 
Join Date: Nov 2017
Posts: 275
There are currently many threads here, due to recent stock run up, especially by people with high stock allocations, approaching/exceeding sufficient numbers, figuring how to dial back.

So I guess this is my version of one of these "How/when to take winnings off the table" threads.

I'm >90% stock, approaching sufficient portfolio size (not exceeding, kind of borderline), and wanting to retire in near future. I need to move somewhat towards safer investments, but have "Fear Of Missing Out" on continued gains. I don't want to sell a bunch of stock that could be much higher 10, 20, 30 years from now.

My solution(s):
Put 100% of all new contributions into cash/bonds(stable value etc).
Start to sell stocks in excess of a fixed dollar value (that's my way of tricking myself that I'm not really selling, as I preserve a dollar value in stocks).
And the main theme for this thread, aim for a target level of cash/bonds in terms of years of spending. I think I'll go for 10 years worth of basic (needs) spending, or fewer years of higher spending levels. I have to hit that level before quitting and extinguishing the human capital (that I can also think of as bonds, but only while working).
43210 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Sidebar to how many months of expenses do you carry in cash Perryinva FIRE and Money 21 09-20-2017 11:06 AM
How Many Month/Years of Living Expenses do You Keep in Cash? nico08 FIRE and Money 63 10-06-2013 02:35 PM
How many years of cash/cash equilivents do you have now Florida FIRE and Money 70 03-10-2009 03:32 PM
How many years of expenses in cash at retirement? Rich_by_the_Bay FIRE and Money 30 03-29-2007 06:52 PM
How many years of expenses in cash Rich_by_the_Bay FIRE and Money 27 07-12-2006 01:52 PM

» Quick Links

 
All times are GMT -6. The time now is 10:04 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2021, vBulletin Solutions, Inc.