Fermion
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As our ER date nears, I am starting to hoard cash. We have to sell our house next year and I want to have money available for repairs if required by the buyer (not too familiar with how all of this works as this is our first sale). The home is paid off but I assume it takes awhile before you get the check.
This of course leads to a bit of market timing, as I am collecting near 6 figures in cash across accounts to attend to house needs and also to provide us with income while working, since I plan to direct 100% of earned income in 2015 toward 401K, after tax 401k ($20,000), two Roths, and HSA contribution. Pretty much it will be 3 months of working with paychecks of $0.
After sale of our home we will have a decent chunk of cash which will need to be invested.
I am thinking of keeping 4 years living expenses in cash (perhaps a CD ladder) and putting the rest in the market lump sum. Four years sounds excessive but I think the ability to lower our MAGI for a great subsidized silver ACA plan outweighs any small amount of interest gained by locking up money in longer term investments.
Do you think 4 years is enough? We will be mid 40s and quite a distance from SS. I plan on keeping our 401K and IRAs 100% in the stock market.
This of course leads to a bit of market timing, as I am collecting near 6 figures in cash across accounts to attend to house needs and also to provide us with income while working, since I plan to direct 100% of earned income in 2015 toward 401K, after tax 401k ($20,000), two Roths, and HSA contribution. Pretty much it will be 3 months of working with paychecks of $0.
After sale of our home we will have a decent chunk of cash which will need to be invested.
I am thinking of keeping 4 years living expenses in cash (perhaps a CD ladder) and putting the rest in the market lump sum. Four years sounds excessive but I think the ability to lower our MAGI for a great subsidized silver ACA plan outweighs any small amount of interest gained by locking up money in longer term investments.
Do you think 4 years is enough? We will be mid 40s and quite a distance from SS. I plan on keeping our 401K and IRAs 100% in the stock market.