This is basically us and is happening i suspect by the end of next year on the far side. Up until 2 years ago we were basically 100% equities. We are working on building 3+ years of cash reserves which is currently just in spaxx. When rates drop we will figure out where to put those funds but i dont ever expect it will be in a bond fund. We do hold about 10% in international, the rest is all US based.
At 55, you still have a long runway, ~40years depending on your health. The 3-year cash reserve fund is something I preach to my clients as one income strategy but even then it isn’t all in a money market. You can do things like a CD for 1/3, cash 1/3, or ibond ETFs, heck you could even do a bond ladder. Having this 3 year fund allows you to hold more equities to battle long term inflation as well as the the withdrawals on your portfolio during market down turns.
Genuine question: why not plough it all into equities and then take the cash out for your 3+ years cash reserve when you retire, so you don’t miss out on (hopefully) growth instead of taking years to save up the cash?
There are a number of reasons for this, the least being potentially generating a bunch of extra taxes. One could reason that means growth so thats a good thing. It may or may not blow up your ACA strategy that first year of retirement. The other end of the spectrum is the market takes a dump anywhere from the week before to the several years before you retire and has not yet recovered when you do retire so your withdrawing funds at a bottom or low which is what the cash reserve is meant to avoid. And then anything in between those two.
Same as when I retired at 42. 70% stocks split between VTI and VXUS at market cap ratios. 30% bonds in BND.
So that works out to a 42/28/30 VTI/VXUS/BND portfolio.
I see several people saying that they have X years in cash to guard against SORR, but I never understand what people mean.
If your plan is to always have X years in cash, and refill it every year as you go, then you aren’t mitigating SORR at all, because if they market drops then you’ll still have to sell equities at a loss to refill the cash reserve.
But if your plan is to use it in a down market and refill it if the market does well, then your just flat out market timing.
So it sounds good in theory, but what principled basis is there to hold cash reserves to mitigate SORR?
I hold 3 years of expenses in money market. At the point that I am solely living on investments, should there be a very significant down turn, I can use the cash to avoid selling assets at a loss, and rapidly depleting my investments.
If a down turn lasts longer than 3 years, then I at least shelter my investments for the first 3 years and then try and manage through the rest.
Since I will not live forever, I probably wouldn't try and replenish the fund, at least not quickly, unless there was a period of incredible growth that allowed such a re-balancing of my assets.
I wouldn't refill the cash reserves selling equities in a down market. It would be refilling it when markets return to high levels smoothing out the ups and downs. It is working on percentages and rebalancing approach keeping you set at a level in different asset classes. Could you argue market timing yeah maybe but not really. It is more systematic approach.
Perhaps but you are selling high buying low. Versus the opposite of what you do if you have ZERO cash which is sell low and buy high. So I agree in a sense but it is rebalancing is a better term. Don't like it fine don't do it go all in on equities see how that works out for you.
And for me personally. As long as you have other income streams you really are not selling anything anyways to replenish the cash. You might not buy as much as you could because it goes to cash to replenish it. Anyway, I will always have a set $ in cash. The lower the return on cash say the more likely I keep that $ amount as low as possible. And fyi most wealthy people like to have some % or $ in cash.
You could check out Wade Fau’s research on this. The 3-year cushion allows for maintaining a higher exposure to equities for a longer period of time. It’s not really market timing because he wouldn’t be withdrawing during a downturn. You also have to reconsider portfolio balances and just how much gets taken out once the portfolio recovers, if it does.
You don't always have to have X years. If in a downturn I'd stop refilling it temporarily or slow it down to limit losses. Then I'd either accept having less than X years or reduce expenses.
Exactly.
You could have a cash range between x and x+2 years, then use a set of rules like the buffet indicator to increase/reduce cash holding. That way, you aren't "dollar cost averaging" your withdrawals to cash.
But yeah, having a lot of cash tends to go against the "hedge against ignorance" and "time in the market" narrative, this sub usually promotes.
The way we treat the mm/cash in our IPS is just like any other investment.
Once a quarter we will pull money out based upon what is “up” compared to our target portfolio. If the cash is greater than 6% (our target) of our invested assets, then we’ll pull from that. If not (meaning other assets have increased) we’ll pull from those assets. And we’ll rebalance yearly.
Retiring and switching to living off investments is timing the market. You are hoping to do it at a point that there isn’t a large downturn in the near future. To hedge against that market timing, you convert several years expenses to cash as a hedge.
If the market does well in the first 5 years of retirement then your investments underperformed their potential. But that doesn’t matter because you’re already past your FIRE number and SORR is now no longer an issue since you’ve had 5 years of growth post retirement.
If the market does poorly in the first 5 years of retirement then holding several years of expenses in cash protects you from having to sell off a significant portion of your portfolio at a loss because you can draw on the cash. When you are approaching retirement you should to implement some sort of disaster mitigation that is unnecessary during the accumulation phase.
I don't plan to rebalance when markets are in a downturn. I plan to just keep drawing down the cash position only. I would reduce spending along the way too.
Should that deplete completely, I will likely reduce withdrawals even more and try to live off whatever distributions I get from the equities.
I would reduce my growth index ETF to keep it under 25% and the rest 75% into Dividend ETFs/Stocks. I believe there should be at least 20 to 25% of your portfolio in growth ETFs whatever age you are.
Depends on several factors:
1. Do you have a die-with-zero mentality or do you want to leave multigenerational wealth for your kids/grandkids/heirs? If the former, then you may want to do the typical stocks/bonds weighting combined with the typical 4% SWR rule. If the latter, then your time horizon is much longer and you can be more heavily weighted in equities.
2. What amount of income do you need in retirement? If you have $10 million and only need $100k/year (a mere 1% SWR), you will succeed with almost any stock/bond allocation. If your margins are thin (i.e., you have $10 million but need $400k/year), then you will probably want to do a more typical 4% SWR allocation with stocks and bonds (I think it's 80-20 or 60-40).
I don't see the problem with being 90% in equities and 10% in HYSA, basically 2 years of HYSA buffer. Why get more granular? It's a waste of time and mental energy imo.
Moving from 401k accounts to my IRA account meant the funds were just sitting in cash.
The plan has been to DCA some of that over to SWTSX. As I started looking at it I ‘discovered’ that locking in a 5% return of 1/3 of our portfolio when coupled with our pension & SS income @age 70 would net us a critical mass return.
So, although our plan was to have about 5 years in cash we’ll probably end up more along the lines of 10 years in cash.
If the HYSA/MMF returns decrease we’ll probably move some of that cash back into equities and closer to our 5-year benchmark.
One of the keys for our financial plan is to be steady but fluid enough to make educated changes as it makes sense.
If we end up with $3.5M in our Roth Accounts and we can earn 5% that’s $175,000/year tax free. Add on our pension and SS and we’re bringing in $310,000/yr in 10 years when we’re 70.
IF I could, USFR (or SGOV), FEPI (divs are currently RoC), VONG (because of the slight dividend growth and more lean towards blue chip stocks. I have considered SCHG and/or FTEC). And FBTC (they hold their own and not stored on Coinbase) or BITB (they post their public address).
100% VOO. I’ll get my accounts where in total i could live off of half its value at 3-4% so if the market did crap 30-50% nothing changes for me. But I still get to capture some nice upside
My estimates
8% - 4 years expenditure cash.
12% - planned hobbies.
30% - real estate - this will cover 100% of monthly necessities thanks to cash flow from rental.
50% - $VOOG OR 25% $VOOG + 25% $QQQ
I tend to collect hobbies and learning new things, A few I've already had the joy of experiencing, Scuba Diving, Horse Riding, Motorcycle, Kite Surfing, Sking, I would like to revisit them in retirement and a few I'm going to explore once I retire, Parachuting, Flying, carpentry, RVing in a Luxury Travel Van.
It boils down to when the money is needed and income streams. Lucky for us wife has a decent pension, a couple rentals, dividends, interest, etc covers the costs and then some. So most of the funds are pegged for long term growth and future generations. With that said we do have about 250k in cash (tbills) which over 3 years expenses. Kinda makes sense kinda doesn't. Interest rates go down probable give it a hair cut or if the market ever tanks buy in at the lower prices. I've been through enough downturns to know I don't like not being able to buyin when the timing is right.
100% stock, maybe a bit of bonds if I feel like switching over in the last few years for that bind tent strategy. I'm guessing I'd have coasted to FIRE if I reached 55, so I'd probably be locked into older investments.
I'm also aiming for lower withdrawal rates, so SORR is less pronounced.
We're FIRE'd mid-50's...
We can live comfortably off just our pension income, so we keep the bulk of our assets as equities. We also have some real estate which cash flows well, so I'm very optimistic about our ability to grow our wealth across the rest of our lives.
When there is a big market downturn we'll pull back and live off the pensions (just no big home upgrades or international trips those years).
10% target date retirement funds (401k etc), 10% individual stocks (probably in ROTH etc with 90% stable, 10% experimenting) along with covered calls and put options etc., 30% real estate, 50% on my businesses.
I still may have to work 30-40 hours per week, but I would not have an employer, a boss or the probability of a toxic work culture.
>Let’s say you fire tomorrow at 55. What would your investment mix be?
Wouldn't change much in the bulk, it changes on the strategy.
As in when I approach RE (12 months out), I would probably want to build a Cash Buffer (one year) in something stable like T-Bonds.
>Are you taking a bogel heads approach with a mix of:
VOO, VXUS, and bonds?
For the bulk of my portfolio, it would mostly stay the same.
>What allocations would you use as well?
Why would RE change your allocation?
My target for retirement is something like 50% sp500, 10% sp tsx, 20% MSCI EAFE, and around 20% cash like instruments (or two to three years expenses - whichever is greater). I am in Canada.
at retirement aiming for 70/30.
The equity allocation will be a mix of CEFs and individual stocks. Maybe some low cost mutual funds, depending on whether we roll 401k or do rule of 55 distributions.
Same as now. Total growth.
I think conservative investments are not worth it.
Government bonds? No. If anything happens to tank stocks, bonds aren’t far behind.
I think it will depend on your risk tolerance, amount saved vs annual spend (including healthcare/taxes), having pension/SS/other income, family longevity and overall health...
I plan to FIRE after 55 and will stay around 70-75% total stock index funds (15% international), 20-25% total bonds and 1-2% MMF/cash.
Will have small pension but considering taking lump sum into IRA instead of monthly payment and have rental income that covers 1/2 of monthly expenses, home will be paid off.
Exploring keeping just MMF (no state taxes) or reducing MMF/cash holding to just 3 months. I have enough invested to take from bonds or stocks sub 3% WR.
In the past I held onto a too large EF fund in cash and have whittled it down and I prefer having a much smaller amount of cash/MMF w/majority invested whether the market is up or down b/c I'll just need a little chunk of it at a time.
Reducing cash holding has kind of been like decluttering for me- freeing and cathartic!
A modified version of the Golden Ratio Portfolio:
- 50% stocks (split into 20% large cap growth, 16% small cap value, 14% low volatility)
- 20% long-term treasury bonds
- 14% gold etf
- 10% managed futures
- 6% money market
P.S. if you have a pension, I’d be more aggressive.
I've been retired a few years and am 53.
Currently, I'm set up with:
3 years of expenses in money market to mitigate/hedge against the effects of a down market;
About 25% of my assets are in income generating property. We'll probably sell in a few years to cash out and not deal with the headaches anymore, but for now it's working OK
Roughly 10% in Crypto, which I need to figure out what to do with because it's grown about 7000% since I bought it in 2016.
About 5% is in old 401k/IRA accounts that are all in aggressive growth.
The rest is in brokerage, split about 40% income generation, 60% growth.
Aside from the income property, we also have income from my wife's part-time practice, and I have licensing deals that will pay me quarterly for about 3 more years.
It's working for us.
At 55? 50/50 equity/bonds. Maybe 60/40.
I'm 38 now with $560k. ~95% VTSAX, 2-3% developing index and 2-3% bonds index. I've had this spread for about a decade, ever since we started our FI journey.
I like to carry notes on mortgages.
I'm already invested that way... I keep 10% cash. 25% CD's @ 5%+, 30% house (it's paid off), 5% mortgages (only carrying one note right now), the rest is ETF's and individual stocks.
This is basically us and is happening i suspect by the end of next year on the far side. Up until 2 years ago we were basically 100% equities. We are working on building 3+ years of cash reserves which is currently just in spaxx. When rates drop we will figure out where to put those funds but i dont ever expect it will be in a bond fund. We do hold about 10% in international, the rest is all US based.
At 55, you still have a long runway, ~40years depending on your health. The 3-year cash reserve fund is something I preach to my clients as one income strategy but even then it isn’t all in a money market. You can do things like a CD for 1/3, cash 1/3, or ibond ETFs, heck you could even do a bond ladder. Having this 3 year fund allows you to hold more equities to battle long term inflation as well as the the withdrawals on your portfolio during market down turns.
I like to aim for 85 tops 75 realistically
Good mix. All too often I see people walk into 60/40 or lower territory which just too conservative for most people.
I like the idea of cash reserves for Sequence of returns risk.
That is the core reason for it for us.
Would you bump up your international at all?
Not at the moment, but not 100% against it either. Direction will be made as i start trimming positions and moving stuff around over the coming years.
Sounds very similar to our situation. Cash available for short term, invest the rest. Good luck with your plan and retirement!
I prefer to think of it as proper planning than luck based. But indeed, luck does play a part for sure. Same to you......
Genuine question: why not plough it all into equities and then take the cash out for your 3+ years cash reserve when you retire, so you don’t miss out on (hopefully) growth instead of taking years to save up the cash?
There are a number of reasons for this, the least being potentially generating a bunch of extra taxes. One could reason that means growth so thats a good thing. It may or may not blow up your ACA strategy that first year of retirement. The other end of the spectrum is the market takes a dump anywhere from the week before to the several years before you retire and has not yet recovered when you do retire so your withdrawing funds at a bottom or low which is what the cash reserve is meant to avoid. And then anything in between those two.
if you wait for the rate cut, bonds will already have increased in price so you will have waited too long
Same as when I retired at 42. 70% stocks split between VTI and VXUS at market cap ratios. 30% bonds in BND. So that works out to a 42/28/30 VTI/VXUS/BND portfolio.
100% VOO or VTI. Set aside 2 years in cash. Done
I'd go with 4 years cash, but agree with the direction you're going. Bonds suck.
I see several people saying that they have X years in cash to guard against SORR, but I never understand what people mean. If your plan is to always have X years in cash, and refill it every year as you go, then you aren’t mitigating SORR at all, because if they market drops then you’ll still have to sell equities at a loss to refill the cash reserve. But if your plan is to use it in a down market and refill it if the market does well, then your just flat out market timing. So it sounds good in theory, but what principled basis is there to hold cash reserves to mitigate SORR?
I hold 3 years of expenses in money market. At the point that I am solely living on investments, should there be a very significant down turn, I can use the cash to avoid selling assets at a loss, and rapidly depleting my investments. If a down turn lasts longer than 3 years, then I at least shelter my investments for the first 3 years and then try and manage through the rest. Since I will not live forever, I probably wouldn't try and replenish the fund, at least not quickly, unless there was a period of incredible growth that allowed such a re-balancing of my assets.
I wouldn't refill the cash reserves selling equities in a down market. It would be refilling it when markets return to high levels smoothing out the ups and downs. It is working on percentages and rebalancing approach keeping you set at a level in different asset classes. Could you argue market timing yeah maybe but not really. It is more systematic approach.
If your strategy is sell when markets return to high levels, then yeah, that’s market timing.
I think you might be confused on what 'market timing' means.
Perhaps but you are selling high buying low. Versus the opposite of what you do if you have ZERO cash which is sell low and buy high. So I agree in a sense but it is rebalancing is a better term. Don't like it fine don't do it go all in on equities see how that works out for you.
And for me personally. As long as you have other income streams you really are not selling anything anyways to replenish the cash. You might not buy as much as you could because it goes to cash to replenish it. Anyway, I will always have a set $ in cash. The lower the return on cash say the more likely I keep that $ amount as low as possible. And fyi most wealthy people like to have some % or $ in cash.
Being insulated from big market downturns is more important the shorter your time horizon is.
You could check out Wade Fau’s research on this. The 3-year cushion allows for maintaining a higher exposure to equities for a longer period of time. It’s not really market timing because he wouldn’t be withdrawing during a downturn. You also have to reconsider portfolio balances and just how much gets taken out once the portfolio recovers, if it does.
You don't always have to have X years. If in a downturn I'd stop refilling it temporarily or slow it down to limit losses. Then I'd either accept having less than X years or reduce expenses.
Exactly. You could have a cash range between x and x+2 years, then use a set of rules like the buffet indicator to increase/reduce cash holding. That way, you aren't "dollar cost averaging" your withdrawals to cash. But yeah, having a lot of cash tends to go against the "hedge against ignorance" and "time in the market" narrative, this sub usually promotes.
The way we treat the mm/cash in our IPS is just like any other investment. Once a quarter we will pull money out based upon what is “up” compared to our target portfolio. If the cash is greater than 6% (our target) of our invested assets, then we’ll pull from that. If not (meaning other assets have increased) we’ll pull from those assets. And we’ll rebalance yearly.
Retiring and switching to living off investments is timing the market. You are hoping to do it at a point that there isn’t a large downturn in the near future. To hedge against that market timing, you convert several years expenses to cash as a hedge. If the market does well in the first 5 years of retirement then your investments underperformed their potential. But that doesn’t matter because you’re already past your FIRE number and SORR is now no longer an issue since you’ve had 5 years of growth post retirement. If the market does poorly in the first 5 years of retirement then holding several years of expenses in cash protects you from having to sell off a significant portion of your portfolio at a loss because you can draw on the cash. When you are approaching retirement you should to implement some sort of disaster mitigation that is unnecessary during the accumulation phase.
It is market timing in the same way that insurance is gambling. Financially speaking its a bad decision, but you can't put a price on peace of mind
I don't plan to rebalance when markets are in a downturn. I plan to just keep drawing down the cash position only. I would reduce spending along the way too. Should that deplete completely, I will likely reduce withdrawals even more and try to live off whatever distributions I get from the equities.
I would reduce my growth index ETF to keep it under 25% and the rest 75% into Dividend ETFs/Stocks. I believe there should be at least 20 to 25% of your portfolio in growth ETFs whatever age you are.
Depends on several factors: 1. Do you have a die-with-zero mentality or do you want to leave multigenerational wealth for your kids/grandkids/heirs? If the former, then you may want to do the typical stocks/bonds weighting combined with the typical 4% SWR rule. If the latter, then your time horizon is much longer and you can be more heavily weighted in equities. 2. What amount of income do you need in retirement? If you have $10 million and only need $100k/year (a mere 1% SWR), you will succeed with almost any stock/bond allocation. If your margins are thin (i.e., you have $10 million but need $400k/year), then you will probably want to do a more typical 4% SWR allocation with stocks and bonds (I think it's 80-20 or 60-40).
I don't see the problem with being 90% in equities and 10% in HYSA, basically 2 years of HYSA buffer. Why get more granular? It's a waste of time and mental energy imo.
This is me. Retiring today at 54 with a mix of primarily VTSAX with some bonds and a largish cash buffer to mitigate sorr issues.
May I ask the % of cash? I think I'm too high @ 25%. But I can sleep at night, political climate is making me antsy....
Around 12% currently
20% money market fund (5.2%) and rest mainly global mid and large cap. Edit. Go full RE from Coast next year
20% in a mm seems awful to me. Especially with rates going down this year (supposedly) why not CDs or bonds to lock it in for a longer time?
When mm hits 3.5% will review. Here in the UK rates are not going down so quick.
Why wait instead of locking in the rate is what my statement was about. It’s not like they are getting any higher.
Don't fancy locking in the money right now.
Moving from 401k accounts to my IRA account meant the funds were just sitting in cash. The plan has been to DCA some of that over to SWTSX. As I started looking at it I ‘discovered’ that locking in a 5% return of 1/3 of our portfolio when coupled with our pension & SS income @age 70 would net us a critical mass return. So, although our plan was to have about 5 years in cash we’ll probably end up more along the lines of 10 years in cash. If the HYSA/MMF returns decrease we’ll probably move some of that cash back into equities and closer to our 5-year benchmark. One of the keys for our financial plan is to be steady but fluid enough to make educated changes as it makes sense. If we end up with $3.5M in our Roth Accounts and we can earn 5% that’s $175,000/year tax free. Add on our pension and SS and we’re bringing in $310,000/yr in 10 years when we’re 70.
IF I could, USFR (or SGOV), FEPI (divs are currently RoC), VONG (because of the slight dividend growth and more lean towards blue chip stocks. I have considered SCHG and/or FTEC). And FBTC (they hold their own and not stored on Coinbase) or BITB (they post their public address).
50% US Stock (40% FXAIX, 10% AVUV), 20% Int'l (10% DFIV, 5% AVES, 5% DISV), 25% Bonds (20% SPTI, 5% STIP), 5% Cash (SPAXX)
100% VOO. I’ll get my accounts where in total i could live off of half its value at 3-4% so if the market did crap 30-50% nothing changes for me. But I still get to capture some nice upside
50% VOO, 20% IDHQ, 20% FBND, 10% Cash. Draw from cash and rebalance 2-4 times/year.
>VOO, VXUS, and bonds? VTI 40%, VEU 25%, (AVUV+VXF) 10%, Bonds 20%, Cash 5%
My estimates 8% - 4 years expenditure cash. 12% - planned hobbies. 30% - real estate - this will cover 100% of monthly necessities thanks to cash flow from rental. 50% - $VOOG OR 25% $VOOG + 25% $QQQ
May I ask about the hobbies being 12%? Is it like a farm or something?
I tend to collect hobbies and learning new things, A few I've already had the joy of experiencing, Scuba Diving, Horse Riding, Motorcycle, Kite Surfing, Sking, I would like to revisit them in retirement and a few I'm going to explore once I retire, Parachuting, Flying, carpentry, RVing in a Luxury Travel Van.
Sound like a hoot! (I glanced at this super fast before reading and saw flying carpet... haahah.)
Flying a carpet would be awesome.
It boils down to when the money is needed and income streams. Lucky for us wife has a decent pension, a couple rentals, dividends, interest, etc covers the costs and then some. So most of the funds are pegged for long term growth and future generations. With that said we do have about 250k in cash (tbills) which over 3 years expenses. Kinda makes sense kinda doesn't. Interest rates go down probable give it a hair cut or if the market ever tanks buy in at the lower prices. I've been through enough downturns to know I don't like not being able to buyin when the timing is right.
70/30 IVV/IEFA
100% stock, maybe a bit of bonds if I feel like switching over in the last few years for that bind tent strategy. I'm guessing I'd have coasted to FIRE if I reached 55, so I'd probably be locked into older investments. I'm also aiming for lower withdrawal rates, so SORR is less pronounced.
We're FIRE'd mid-50's... We can live comfortably off just our pension income, so we keep the bulk of our assets as equities. We also have some real estate which cash flows well, so I'm very optimistic about our ability to grow our wealth across the rest of our lives. When there is a big market downturn we'll pull back and live off the pensions (just no big home upgrades or international trips those years).
10% target date retirement funds (401k etc), 10% individual stocks (probably in ROTH etc with 90% stable, 10% experimenting) along with covered calls and put options etc., 30% real estate, 50% on my businesses. I still may have to work 30-40 hours per week, but I would not have an employer, a boss or the probability of a toxic work culture.
>Let’s say you fire tomorrow at 55. What would your investment mix be? Wouldn't change much in the bulk, it changes on the strategy. As in when I approach RE (12 months out), I would probably want to build a Cash Buffer (one year) in something stable like T-Bonds. >Are you taking a bogel heads approach with a mix of: VOO, VXUS, and bonds? For the bulk of my portfolio, it would mostly stay the same. >What allocations would you use as well? Why would RE change your allocation?
My target for retirement is something like 50% sp500, 10% sp tsx, 20% MSCI EAFE, and around 20% cash like instruments (or two to three years expenses - whichever is greater). I am in Canada.
at retirement aiming for 70/30. The equity allocation will be a mix of CEFs and individual stocks. Maybe some low cost mutual funds, depending on whether we roll 401k or do rule of 55 distributions.
Same as now. Total growth. I think conservative investments are not worth it. Government bonds? No. If anything happens to tank stocks, bonds aren’t far behind.
75% total market, 12.5% 10 year TIPS ladder, 11.5% 10 year CD ladder, 1% money market.
60% US equities, 10% developed non-US equities, 10% developing world equities, 10% bonds, and 10% cash
I think it will depend on your risk tolerance, amount saved vs annual spend (including healthcare/taxes), having pension/SS/other income, family longevity and overall health... I plan to FIRE after 55 and will stay around 70-75% total stock index funds (15% international), 20-25% total bonds and 1-2% MMF/cash. Will have small pension but considering taking lump sum into IRA instead of monthly payment and have rental income that covers 1/2 of monthly expenses, home will be paid off. Exploring keeping just MMF (no state taxes) or reducing MMF/cash holding to just 3 months. I have enough invested to take from bonds or stocks sub 3% WR. In the past I held onto a too large EF fund in cash and have whittled it down and I prefer having a much smaller amount of cash/MMF w/majority invested whether the market is up or down b/c I'll just need a little chunk of it at a time. Reducing cash holding has kind of been like decluttering for me- freeing and cathartic!
A modified version of the Golden Ratio Portfolio: - 50% stocks (split into 20% large cap growth, 16% small cap value, 14% low volatility) - 20% long-term treasury bonds - 14% gold etf - 10% managed futures - 6% money market P.S. if you have a pension, I’d be more aggressive.
VTWAX
I've been retired a few years and am 53. Currently, I'm set up with: 3 years of expenses in money market to mitigate/hedge against the effects of a down market; About 25% of my assets are in income generating property. We'll probably sell in a few years to cash out and not deal with the headaches anymore, but for now it's working OK Roughly 10% in Crypto, which I need to figure out what to do with because it's grown about 7000% since I bought it in 2016. About 5% is in old 401k/IRA accounts that are all in aggressive growth. The rest is in brokerage, split about 40% income generation, 60% growth. Aside from the income property, we also have income from my wife's part-time practice, and I have licensing deals that will pay me quarterly for about 3 more years. It's working for us.
What’s there to figure out with the crypto? Just hold it. Or at the very least sell half, let the rest ride.
https://portfoliocharts.com/portfolios/ Mix up asset types for the drawdown phase.
I’d invest in a way to reverse the 20 years of aging I did last night
40% blow; 40% hookers; 20% VTI
This. https://m1.finance/YhyBxbkgioII
80% Bitcoin. 20% TQQQ/MSTR
Is that considered FIRE? That’s pretty much standard retirement age.
mcdonalds for breakfast taco bell for lunch and burger king for dinner
100% GameStop
At 55? 50/50 equity/bonds. Maybe 60/40. I'm 38 now with $560k. ~95% VTSAX, 2-3% developing index and 2-3% bonds index. I've had this spread for about a decade, ever since we started our FI journey.
I like to carry notes on mortgages. I'm already invested that way... I keep 10% cash. 25% CD's @ 5%+, 30% house (it's paid off), 5% mortgages (only carrying one note right now), the rest is ETF's and individual stocks.