How much Cash did you have upon retiring or planning to have -2x-3x yearly expenses?

[Out-to-Lunch]

Got it. Forgot about the withdrawals. That’s why my plan is to maintain a nice cushion of cash to avoid withdrawals during major crashes or to withdraw insignificant amounts. This is where the different legs of the stool come in handy.

Yes, you see the benefit of not having a 100/0 AA!

Of course, I do not purport to know what the right mix will be.... Maybe 100/0 will win.

 

[Koolau]

Never in the history of the stock market has an AA = 100% equities over 30+ years yielded a return less than 8% and the average return is much higher.

I’m 49 years old and hope to have 40+ years to go so my AA will always be 100% equities.

With nearly a century worth of historical data (see website link below) and 30+ years to go, IMHO there is no risk nor better place to stash my hard earned money.

https://awealthofcommonsense.com/2016/05/deconstructing-30-year-stock-market-returns/

I'm sure your evaluation is correct. Certainly "young" folks - especially during accumulation can commit 100% to equities since they probably have the 30 year time frame for recovery. I'm 75 and reasonably sure I don't have 30 years remaining.

Some folks here, not much younger than I still have very high equity positions. I think that's where my question lies - for the folks in 60s and 70s. IOW what is the advantage of a high equity position when you are "old?"

 

[Letj]

Yes, you see the benefit of not having a 100/0 AA!



Of course, I do not purport to know what the right mix will be.... Maybe 100/0 will win.

Yes!! I am currently at 100% equities although retired but won’t draw for 10 years. I ran Firecalc with 100% equities at 3% withdrawal 35 years and it gave a 100% success with a healthy balance not much difference from a 75/25 equity/bond split.

 

[Out-to-Lunch]

That’s why my plan is to maintain a nice cushion of cash to avoid withdrawals during major crashes or to withdraw insignificant amounts.

Yes!! I am currently at 100% equities.

Just curious: When do you intend to sell the equities to generate the cash cushion? Close to the time you will start to draw, or gradually?

 

[Letj]

Good question. I don’t think I’ll need to because i have a business that generates cash and I am sitting on a big chunk right now. I worry about inflation but I don’t know where to put my cash.

 

[mebden]

Good question. I don’t think I’ll need to because i have a business that generates cash and I am sitting on a big chunk right now. I worry about inflation but I don’t know where to put my cash.

I keep all my cash in online banks that at least offer 50 to .77% interest on my money better than any local banks