rogerwilkouk
Confused about dryer sheets
- Joined
- Aug 27, 2020
- Messages
- 4
Hi Everyone.
Just want to start by saying how much I appreciate this forum and all the wisdom it has given me over the last few years.
I am just turning 50 and DW is just turning 55. We are aiming for another 7 years before we can retire to the good life.
Current Income is around $130K and saving around $40K per year across 401K, HSA, ROTH IRA and Taxable.
I feel like our plan is on track, however still too far off to really know due to the unknowns (the Market, Inflation etc.) and right now, that’s not my primary question.
My big question which over the years I don’t think I’ve ever really seen addressed is this, and I may simply be drastically overthinking this (something I am guilty of)
A lot of people carry say 2 years of Cash in their portfolio that they can turn to as opposed to selling their portfolio in a downturn.
If so, what is your trigger for when to actually turn to your cash reserves. I am not talking about buying a down market, I am talking about pulling your living expenses from your investments.
Say you draw your required spending each month throughout the year, did you turn to Cash in February/March 2020 as the market took a drop? If so, was it because it was down 10%, 20%? And down from what level? It’s all time high?
Do you look and say, my return from this time last year is negative, therefore utilize Cash or is it if the return is more than x% drop from last year or more than x% drop from the beginning of the year etc.
I hope that makes sense. And please feel free to tell me if I am just overthinking this.
Just want to start by saying how much I appreciate this forum and all the wisdom it has given me over the last few years.
I am just turning 50 and DW is just turning 55. We are aiming for another 7 years before we can retire to the good life.
Current Income is around $130K and saving around $40K per year across 401K, HSA, ROTH IRA and Taxable.
I feel like our plan is on track, however still too far off to really know due to the unknowns (the Market, Inflation etc.) and right now, that’s not my primary question.
My big question which over the years I don’t think I’ve ever really seen addressed is this, and I may simply be drastically overthinking this (something I am guilty of)
A lot of people carry say 2 years of Cash in their portfolio that they can turn to as opposed to selling their portfolio in a downturn.
If so, what is your trigger for when to actually turn to your cash reserves. I am not talking about buying a down market, I am talking about pulling your living expenses from your investments.
Say you draw your required spending each month throughout the year, did you turn to Cash in February/March 2020 as the market took a drop? If so, was it because it was down 10%, 20%? And down from what level? It’s all time high?
Do you look and say, my return from this time last year is negative, therefore utilize Cash or is it if the return is more than x% drop from last year or more than x% drop from the beginning of the year etc.
I hope that makes sense. And please feel free to tell me if I am just overthinking this.
