In-control
Recycles dryer sheets
- Joined
- Mar 9, 2007
- Messages
- 319
Hello:
Being new to the FI I was wondering if anyone else has been loosing a little sleep over the current market downturn? I have saved my sanity with a living expense model that I have been using - Which I wanted to share with you as it has helped me sleep at night and ignore the market noise. Maybe it can help you or you you can share your model.
I essentially have 3 rotating years of living expenses - adjusted for inflation each year. This year I am building the funds that I will need in 2011. I establish a CD ladder - 3yr/2yr 1yr = MM/checking account. In January of 2008 I will open a 3 yr CD after I re-balance - keeping to the 4% rule.
This living expense model has given me freedom - because even if my portfolio has a bad year - I have time to recover and or adjust to the possible lower funds for that year.
Just my 2 cents
Being new to the FI I was wondering if anyone else has been loosing a little sleep over the current market downturn? I have saved my sanity with a living expense model that I have been using - Which I wanted to share with you as it has helped me sleep at night and ignore the market noise. Maybe it can help you or you you can share your model.
I essentially have 3 rotating years of living expenses - adjusted for inflation each year. This year I am building the funds that I will need in 2011. I establish a CD ladder - 3yr/2yr 1yr = MM/checking account. In January of 2008 I will open a 3 yr CD after I re-balance - keeping to the 4% rule.
This living expense model has given me freedom - because even if my portfolio has a bad year - I have time to recover and or adjust to the possible lower funds for that year.
Just my 2 cents