Holding too much cash now?

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mike2468
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Holding too much cash now?

Post by mike2468 » Tue Feb 12, 2019 8:14 am

My wife and I are looking to retire in 4 years and when we do we want to implement the bucket strategy. Bucket 1 will consist of two years of cash. Today we already have two years of cash in our portfolio which we used a little of it to buy more stock during the dips towards the end of 2018. Most of the cash though is just sitting in a short term bond fund.

Since we will be working for the next 4 years, should we reduce our cash holdings to 6 months of living expenses and use the rest now to buy stocks?
We can easily save money later to fill bucket 1 prior to retirement.

Appreciate your thoughts on this.
Mike

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Re: Holding too much cash now?

Post by BogleBoogie » Tue Feb 12, 2019 8:18 am

Stocks aren't a 4 year purchase. The general consensus on this site seems to be don't invest in something that you aren't prepared to hold for 10+ years. If you've essentially won the game, consider not playing. You haven't provided enough information for anyone to provide a definitive answer here, but that's my 2 cents. Good luck!

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Wiggums
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Re: Holding too much cash now?

Post by Wiggums » Tue Feb 12, 2019 8:22 am

Two years In cash is a lot considering that your are both working. what percent of assets this cash represents. Not sure of your risk tolerance or perhaps you are starting to hold cash for upcoming retirement. Also, equities are a long term purchase. So make sure any stock purchases represents a long term buy and hold strategy. How does this addition equities purchase fit into your portfolio and need for cash in retirement to cover expenses.

See asking portfolio questions https://www.bogleheads.org/forum/view ... 212#p7619
Last edited by Wiggums on Tue Feb 12, 2019 8:38 am, edited 6 times in total.

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JoeRetire
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Re: Holding too much cash now?

Post by JoeRetire » Tue Feb 12, 2019 8:24 am

mike2468 wrote:
Tue Feb 12, 2019 8:14 am
My wife and I are looking to retire in 4 years and when we do we want to implement the bucket strategy. Bucket 1 will consist of two years of cash. Today we already have two years of cash in our portfolio which we used a little of it to buy more stock during the dips towards the end of 2018. Most of the cash though is just sitting in a short term bond fund.

Since we will be working for the next 4 years, should we reduce our cash holdings to 6 months of living expenses and use the rest now to buy stocks?
We can easily save money later to fill bucket 1 prior to retirement.
No.

Fill bucket 1 again now so that it contains the desired two years of expenses.
Then buy whatever stock you like using your cash flow over the next 4 years.
Very Stable Genius

student
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Re: Holding too much cash now?

Post by student » Tue Feb 12, 2019 8:30 am

JoeRetire wrote:
Tue Feb 12, 2019 8:24 am
mike2468 wrote:
Tue Feb 12, 2019 8:14 am
My wife and I are looking to retire in 4 years and when we do we want to implement the bucket strategy. Bucket 1 will consist of two years of cash. Today we already have two years of cash in our portfolio which we used a little of it to buy more stock during the dips towards the end of 2018. Most of the cash though is just sitting in a short term bond fund.

Since we will be working for the next 4 years, should we reduce our cash holdings to 6 months of living expenses and use the rest now to buy stocks?
We can easily save money later to fill bucket 1 prior to retirement.
No.

Fill bucket 1 again now so that it contains the desired two years of expenses.
Then buy whatever stock you like using your cash flow over the next 4 years.
+1.

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mike2468
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Re: Holding too much cash now?

Post by mike2468 » Tue Feb 12, 2019 8:42 am

The stock we buy today with the available cash we would hold long term.

10% of our portfolio is now in cash.

I keep thinking about the lost opportunity cost of holding cash now when we don't need it for 4 years. I guess it makes sense just to keep the 2 yrs of cash in the short term bond fund and just buy stock with my future earnings over the next 4 years.

Sorry, I'm new to this site. What does +1 mean student?

mergerreview
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Re: Holding too much cash now?

Post by mergerreview » Tue Feb 12, 2019 8:45 am

It means "I agree".

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Re: Holding too much cash now?

Post by livesoft » Tue Feb 12, 2019 8:49 am

What exactly is your asset allocation in terms of percent US equities? Percent foreign equities? Percent intermediate-term bonds? Percent short-term bonds? And Percent cash in savings accounts. money markets, and CDs? And besides those things, what else do you have invested? And besides that, do you have any more money laying around?
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Sheepdog
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Re: Holding too much cash now?

Post by Sheepdog » Tue Feb 12, 2019 8:51 am

Off the subject...sort of...just browsing this morning was this article which says that some traders have gone to cash [quote]Traders With $515 Billion Boycott Stocks for Cash Despite Rally [/quote] https://www.msn.com/en-us/money/markets ... li=BBnbfcL

Back to the subject, I have 3 1/2 years average in-retirement withdrawals in cash or cash equivalents. My advice has been for a lot of years "don't invest in stocks any money which you will need in the next 3 to 5 years...keep that safe."
Last edited by Sheepdog on Tue Feb 12, 2019 8:55 am, edited 1 time in total.
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RickBoglehead
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Re: Holding too much cash now?

Post by RickBoglehead » Tue Feb 12, 2019 8:53 am

We're just over 2 years from retirement. We currently have too many years of expenses in cash. However, I count money market accounts and CDs as my bond percentage, and that's fine.

I would not hold 4 years of expenses in cash this far from retirement unless a) it was part of my bond percentage and b) it was yielding a rate equal to or higher than Vanguard Prime Money Market (2.5%).
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TheTimeLord
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Re: Holding too much cash now?

Post by TheTimeLord » Tue Feb 12, 2019 8:57 am

mike2468 wrote:
Tue Feb 12, 2019 8:14 am
My wife and I are looking to retire in 4 years and when we do we want to implement the bucket strategy. Bucket 1 will consist of two years of cash. Today we already have two years of cash in our portfolio which we used a little of it to buy more stock during the dips towards the end of 2018. Most of the cash though is just sitting in a short term bond fund.

Since we will be working for the next 4 years, should we reduce our cash holdings to 6 months of living expenses and use the rest now to buy stocks?
We can easily save money later to fill bucket 1 prior to retirement.

Appreciate your thoughts on this.
Mike
To me stocks are a minimum 10-15 year investment. To show you how people's perspectives differ I wouldn't want to enter retirement with less than 10x expenses in safe fixed income assets. I would also establish that about 5 years out from retirement to protect from Sequence of Returns Risk.
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dbr
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Re: Holding too much cash now?

Post by dbr » Tue Feb 12, 2019 9:02 am

Generally a buckets scheme is not a little bit of cash and then all stocks. There should be a bond holding in the middle ground. In my opinion this is not different from just holding a balanced portfolio of stocks and bonds. If you have 25x your annual withdrawals to start then ideas about 10 years in "safe" assets and so on are also met. There is no particular reason to have anything in cash per se. The natural cash that exists as money comes and goes in various accounts should be sufficient to manage money. It is not necessary to ever sell stocks when stocks are down as bonds exist for that purpose.

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ResearchMed
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Re: Holding too much cash now?

Post by ResearchMed » Tue Feb 12, 2019 9:03 am

RickBoglehead wrote:
Tue Feb 12, 2019 8:53 am
We're just over 2 years from retirement. We currently have too many years of expenses in cash. However, I count money market accounts and CDs as my bond percentage, and that's fine.

I would not hold 4 years of expenses in cash this far from retirement unless a) it was part of my bond percentage and b) it was yielding a rate equal to or higher than Vanguard Prime Money Market (2.5%).
Why can't money market holdings be considered "cash"? Or does it have to be under the mattress or in various jars around the house :wink:
Do you consider only money in plain vanilla "bank savings accounts" to be "cash"?

We consider the amounts in retail class MM funds to be most of our "cash".
(The retail MM funds have very few of the restrictions such as gates/withdrawal fees that the institutional funds now have - if ever needed again.)

RM
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Re: Holding too much cash now?

Post by cyfairslam » Tue Feb 12, 2019 9:03 am

I am in a similar situation except I have:

2 years of living expenses in cash earning about 2%
and 7+ years of living expenses in bonds and bond funds that are short term earning about 3% per year.

I plan to retire in about 2 years. I really don't care that I may not be earning the maximum that I could. I am more concerned about retiring into a recession and a sever drop in the stock market. I want to be able to ride it out without selling my stocks.

I like the advice to keep your money in cash and use your savings the next 4 years to buy stocks or better yet to buy stocks and bonds in the allocation that best fits your situation. For me that is 50/50.

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TheTimeLord
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Re: Holding too much cash now?

Post by TheTimeLord » Tue Feb 12, 2019 9:06 am

mike2468 wrote:
Tue Feb 12, 2019 8:42 am
The stock we buy today with the available cash we would hold long term.

10% of our portfolio is now in cash.

I keep thinking about the lost opportunity cost of holding cash now when we don't need it for 4 years. I guess it makes sense just to keep the 2 yrs of cash in the short term bond fund and just buy stock with my future earnings over the next 4 years.

Sorry, I'm new to this site. What does +1 mean student?
You need to stop saying cash and let people know what fixed income assets you have like Money Markets, CDs and Bond funds. Around here the definition of cash is debated and for the most part people look at things in a percentage of equities and percentage of fixed income assets perspective. Right now I am assuming you are telling me 4 years out from retirement you have a 90/10 asset allocation and you want to increase your equity percentage. That may be totally incorrect but that is the way I interpret the information you have provided. I would then also assume 4 years from retirement you have 20x expenses.
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TheTimeLord
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Re: Holding too much cash now?

Post by TheTimeLord » Tue Feb 12, 2019 9:11 am

ResearchMed wrote:
Tue Feb 12, 2019 9:03 am
RickBoglehead wrote:
Tue Feb 12, 2019 8:53 am
We're just over 2 years from retirement. We currently have too many years of expenses in cash. However, I count money market accounts and CDs as my bond percentage, and that's fine.

I would not hold 4 years of expenses in cash this far from retirement unless a) it was part of my bond percentage and b) it was yielding a rate equal to or higher than Vanguard Prime Money Market (2.5%).
Why can't money market holdings be considered "cash"? Or does it have to be under the mattress or in various jars around the house :wink:
Do you consider only money in plain vanilla "bank savings accounts" to be "cash"?

We consider the amounts in retail class MM funds to be most of our "cash".
(The retail MM funds have very few of the restrictions such as gates/withdrawal fees that the institutional funds now have - if ever needed again.)

RM
I have no clue abut this obsession with separating "cash" from fixed income assets. To me it is just an unnecessary complexity. I really don't distinguish between liquid fixed income assets savings accounts, checking accounts, money markets, CDs, bonds and bonds funds to me are just different flavors of fixed income assets and "cash" does not need to be broken out separately imho.
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dbr
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Re: Holding too much cash now?

Post by dbr » Tue Feb 12, 2019 9:12 am

Probably the dividing point in fixed income that matters is between holdings denominated in a fixed amount of dollars and those the value of which can fluctuate on a market. Things that don't fluctuate on a market include home (not foreign) currency, checking accounts, savings accounts, CDs (except those brokered at a broker), I bonds, stable value funds, even annuities as a cash flow, and so on. Only one of those is fixed in real dollars.

In practice the distinction is not very helpful.

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TheTimeLord
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Re: Holding too much cash now?

Post by TheTimeLord » Tue Feb 12, 2019 9:17 am

dbr wrote:
Tue Feb 12, 2019 9:12 am
Probably the dividing point in fixed income that matters is between holdings denominated in a fixed amount of dollars and those the value of which can fluctuate on a market. Things that don't fluctuate on a market include home (not foreign) currency, checking accounts, savings accounts, CDs (except those brokered at a broker), I bonds, stable value funds, even annuities as a cash flow, and so on. Only one of those is fixed in real dollars.

In practice the distinction is not very helpful.
Amen
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Re: Holding too much cash now?

Post by Jack FFR1846 » Tue Feb 12, 2019 9:24 am

I'm closer than 4 years to retirement (I'd like it to be sometime this year, but probably will go "one more year"), and keep only enough cash (as in checking, savings, HYSA) to pay known upcoming bills, including college tuitions for 2 kids. But I have stacked, no risk investments beyond that point, which I think you could benefit from and reduce that 2 years cash to something more reasonable.

As mentioned, CDs will give you more interest and still be "safe". Be sure you know the early withdrawal penalties.

US Savings bonds are a great place to park money. You pay no taxes until they're cashed, you pay no state tax ever and if you have kids in college and a low enough income, the federal tax could be zero. $10k per person plus you can get $5k in federal tax return in the form of paper bonds. I refuse to use online treasury direct so am all in paper bonds, but have 7 years worth of spending in paper. I'll have $5k in paper bonds added this tax refund season.

Everyone knows stock funds go up and down. Bond funds do too. Don't fool yourself that putting cash into a bond fund is just as safe and can't lose money.
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Re: Holding too much cash now?

Post by Sandtrap » Tue Feb 12, 2019 9:35 am

mike2468 wrote:
Tue Feb 12, 2019 8:14 am
My wife and I are looking to retire in 4 years and when we do we want to implement the bucket strategy. Bucket 1 will consist of two years of cash. Today we already have two years of cash in our portfolio which we used a little of it to buy more stock during the dips towards the end of 2018. Most of the cash though is just sitting in a short term bond fund.

Since we will be working for the next 4 years, should we reduce our cash holdings to 6 months of living expenses and use the rest now to buy stocks?
We can easily save money later to fill bucket 1 prior to retirement.

Appreciate your thoughts on this.
Mike
Some actionable random thoughts and suggestions and options amongst many. :happy

Because of the short time frame to retirement, continue to structure your Buckets/Tiers.
For the "short" 4 years, the needs of Bucket 1/Tier 1 should be: security of principle, liquidity, accessibility. Segue this with your Emergency Fund that you might need even more during your upcoming retirement transition period.
Consider a diversification of your fixed to include any or a number of the following: IE: MM, CD Ladders, etc.
Here is a not up to date Vanguard visual of various "fixed" available to you besides the bond index funds of various durations that may be helpful:
Image
Some may consider 2 years in Bucket 1 too small since you are working. But, soon, you won't be. So you can also look at it as being too small depending on how you diversify it.
Why?
Consider searching the forum archives for, "Sequence of Returns Risk", "Kitces", "Bond Tent" (also can be a fixed tent that does not include bonds), etc.
Threads like this one:
viewtopic.php?t=237617

Your fixed allocation and Emergency Fund, as well as the rest of your portfolio can be "dynamic" going through the retirement transition zone. It does not have to be a certain one way now and remain that way.
Why?
Because your conditions change (employed to non employed), etc, during this time.

So, the question of "too much cash?" will change depending on the above. It depends on your comfort zone and needs. Everyone is different.
j
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golfer292
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Re: Holding too much cash now?

Post by golfer292 » Tue Feb 12, 2019 9:43 am

TheTimeLord wrote:
Tue Feb 12, 2019 9:11 am
ResearchMed wrote:
Tue Feb 12, 2019 9:03 am
RickBoglehead wrote:
Tue Feb 12, 2019 8:53 am
We're just over 2 years from retirement. We currently have too many years of expenses in cash. However, I count money market accounts and CDs as my bond percentage, and that's fine.

I would not hold 4 years of expenses in cash this far from retirement unless a) it was part of my bond percentage and b) it was yielding a rate equal to or higher than Vanguard Prime Money Market (2.5%).
Why can't money market holdings be considered "cash"? Or does it have to be under the mattress or in various jars around the house :wink:
Do you consider only money in plain vanilla "bank savings accounts" to be "cash"?

We consider the amounts in retail class MM funds to be most of our "cash".
(The retail MM funds have very few of the restrictions such as gates/withdrawal fees that the institutional funds now have - if ever needed again.)

RM
I have no clue abut this obsession with separating "cash" from fixed income assets. To me it is just an unnecessary complexity. I really don't distinguish between liquid fixed income assets savings accounts, checking accounts, money markets, CDs, bonds and bonds funds to me are just different flavors of fixed income assets and "cash" does not need to be broken out separately imho.
I feel the same. Enough complexity in life already.

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Re: Holding too much cash now?

Post by flyingaway » Tue Feb 12, 2019 9:49 am

This "cash" is just a part of your bond allocation, unless you want 100% in stocks.

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goingup
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Re: Holding too much cash now?

Post by goingup » Tue Feb 12, 2019 9:55 am

I think you're fine with 2 years expense in short-term bonds as you near retirement. Our plan, as we are on the cusp of retiring, is 2 years in cash (MM fund) and 8-10 years in short/intermediate term bonds. The rest in stock funds. That's roughly 60/40 AA. Seems good enough. :beer

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Re: Holding too much cash now?

Post by michaeljmroger » Tue Feb 12, 2019 10:43 am

BogleBoogie wrote:
Tue Feb 12, 2019 8:18 am
Stocks aren't a 4 year purchase. The general consensus on this site seems to be don't invest in something that you aren't prepared to hold for 10+ years.
TheTimeLord wrote:
Tue Feb 12, 2019 8:57 am
To me stocks are a minimum 10-15 year investment.
This is such a popular misconception on this forum. People are either unreasonably risk averse here, or genuinely misinformed.

Virtually any investment company (including Schwab and Vanguard) recommends at least 30% stocks for a 5-year horizon. Heck, Betterment goes as far as recommending 60% stocks for 5 years. This is probably too agressive for most people, but going the other direction and recommending literally 0% stocks sounds extremely unwise to me.

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TheTimeLord
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Re: Holding too much cash now?

Post by TheTimeLord » Tue Feb 12, 2019 10:56 am

michaeljmroger wrote:
Tue Feb 12, 2019 10:43 am
BogleBoogie wrote:
Tue Feb 12, 2019 8:18 am
Stocks aren't a 4 year purchase. The general consensus on this site seems to be don't invest in something that you aren't prepared to hold for 10+ years.
TheTimeLord wrote:
Tue Feb 12, 2019 8:57 am
To me stocks are a minimum 10-15 year investment.
This is such a popular misconception on this forum. People are either unreasonably risk averse here, or genuinely misinformed.

Virtually any investment company (including Schwab and Vanguard) recommends at least 30% stocks for a 5-year horizon. Heck, Betterment goes as far as recommending 60% stocks for 5 years. This is probably too agressive for most people, but going the other direction and recommending literally 0% stocks sounds extremely unwise to me.
I think you are confusing the recommendations for people at or near retirement with those for accumulators. Let's assume you are at retirement with 25x expenses, that means with 10 years in fixed income you are 60/40, 15 years and you are still 40/60. Kick that up to folks with 33x and 10 years is roughly 70/30 or 15 years is roughly 55/45. I am not sure where you see people recommending 0% stocks? The OP is 4 years from retirement and is asking about what to do with the 2 years of expenses they have in cash (which OP says is 10% of portfolio) so I am assuming they are 90/10 currently.
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Re: Holding too much cash now?

Post by inbox788 » Tue Feb 12, 2019 2:23 pm

TheTimeLord wrote:
Tue Feb 12, 2019 9:06 am
You need to stop saying cash and let people know what fixed income assets you have like Money Markets, CDs and Bond funds. Around here the definition of cash is debated and for the most part people look at things in a percentage of equities and percentage of fixed income assets perspective. Right now I am assuming you are telling me 4 years out from retirement you have a 90/10 asset allocation and you want to increase your equity percentage. That may be totally incorrect but that is the way I interpret the information you have provided. I would then also assume 4 years from retirement you have 20x expenses.
Yup!

OP, tell us your current AA, and how you consider the 10% cash you're discussing. A difference of 50/50 vs 60/40 isn't huge.

Anyway, I also figured 20x expenses (5% withdraw) and would say one would need to get to 25X (4% SWR). With 4 more years in contributions and a little growth, the odds of getting to or over 25X seem very good.
mike2468 wrote:
Tue Feb 12, 2019 8:42 am
I keep thinking about the lost opportunity cost...
Don't let greed take over. Make a good plan and stick to it. Even if we have a roaring 10 year bull market, near retirement and in retirement, you'll be spending cash and cashing out equity missing out a whole lot more. Don't worry about it, and enjoy your lifelong hard work in your later years. And when the market turn steeply, don't let fear take over. Again, remember to stick to the good plan that prepares for these fluctuations.

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mike2468
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Re: Holding too much cash now?

Post by mike2468 » Tue Feb 12, 2019 2:42 pm

Sorry, when I said 10% cash I meant 10% in short term bonds.

My current AA is:

50% US Stock
10% International Stock
30% Intermediate Bonds
10% Short term Bonds

I was planning on keeping that allocation throughout retirement due to me being age 56 at retirement.

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Re: Holding too much cash now?

Post by livesoft » Tue Feb 12, 2019 3:02 pm

mike2468 wrote:
Tue Feb 12, 2019 2:42 pm
50% US Stock
10% International Stock
30% Intermediate Bonds
10% Short term Bonds
Looks fine to me and rather typical of a typical retiree asset allocation. Whether you call your plan buckets or not is really up to you.
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TheTimeLord
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Re: Holding too much cash now?

Post by TheTimeLord » Tue Feb 12, 2019 3:06 pm

mike2468 wrote:
Tue Feb 12, 2019 2:42 pm
Sorry, when I said 10% cash I meant 10% in short term bonds.

My current AA is:

50% US Stock
10% International Stock
30% Intermediate Bonds
10% Short term Bonds

I was planning on keeping that allocation throughout retirement due to me being age 56 at retirement.
How did you calculate the 20x of expenses? Did you allow for social security kicking innate some point when calculating expenses? Have you calculated your actual SS benefit given your work history? How do you plan to cover healthcare from 56 to 65? These are a few of the things I think you should consider working through before pulling the plug.
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carol-brennan
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Re: Holding too much cash now?

Post by carol-brennan » Tue Feb 12, 2019 3:22 pm

mike2468 wrote:
Tue Feb 12, 2019 8:14 am
should we reduce our cash holdings to 6 months of living expenses and use the rest now to buy stocks?
No. Gradually increase cash holding to 4 years. Put the cash into CDs.

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Re: Holding too much cash now?

Post by carol-brennan » Tue Feb 12, 2019 3:25 pm

cyfairslam wrote:
Tue Feb 12, 2019 9:03 am
I am in a similar situation except I have:

2 years of living expenses in cash earning about 2%
and 7+ years of living expenses in bonds and bond funds that are short term earning about 3% per year.

I plan to retire in about 2 years. I really don't care that I may not be earning the maximum that I could. I am more concerned about retiring into a recession and a sever drop in the stock market. I want to be able to ride it out without selling my stocks.

I like the advice to keep your money in cash and use your savings the next 4 years to buy stocks or better yet to buy stocks and bonds in the allocation that best fits your situation. For me that is 50/50.
This is the way to do it.

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Re: Holding too much cash now?

Post by tennisplyr » Wed Feb 13, 2019 8:08 am

goingup wrote:
Tue Feb 12, 2019 9:55 am
I think you're fine with 2 years expense in short-term bonds as you near retirement. Our plan, as we are on the cusp of retiring, is 2 years in cash (MM fund) and 8-10 years in short/intermediate term bonds. The rest in stock funds. That's roughly 60/40 AA. Seems good enough. :beer
+1
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Re: Holding too much cash now?

Post by OffGridder » Wed Feb 13, 2019 2:01 pm

I am in retirement withdrawal phase. Three fund portfolio. Fixed income allocation is all in TBM, plus 6 months expense in a Money Market fund. Once per year in December we withdraw our estimated expenses for the following year from the 3 fund portfolio to maintain our Target AA, and transfer those funds to a Money Market account. We draw that MM account down by transfers to checking account on monthly basis and then replenish the MM the following December. So the amount we have in "cash" ranges from around 6 to 18 months expenses.
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Re: Holding too much cash now?

Post by BogleBoogie » Fri Feb 15, 2019 8:07 pm

michaeljmroger wrote:
Tue Feb 12, 2019 10:43 am
BogleBoogie wrote:
Tue Feb 12, 2019 8:18 am
Stocks aren't a 4 year purchase. The general consensus on this site seems to be don't invest in something that you aren't prepared to hold for 10+ years.
TheTimeLord wrote:
Tue Feb 12, 2019 8:57 am
To me stocks are a minimum 10-15 year investment.
This is such a popular misconception on this forum. People are either unreasonably risk averse here, or genuinely misinformed.

Virtually any investment company (including Schwab and Vanguard) recommends at least 30% stocks for a 5-year horizon. Heck, Betterment goes as far as recommending 60% stocks for 5 years. This is probably too agressive for most people, but going the other direction and recommending literally 0% stocks sounds extremely unwise to me.
To each their own. I wouldn't call this position either unreasonably risk averse misinformed. If you want to utilize the cash in the short term, going with equities is not advisable.

radiowave
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Joined: Thu Apr 30, 2015 5:01 pm

Re: Holding too much cash now?

Post by radiowave » Fri Feb 15, 2019 8:45 pm

I'm in the camp CD/T-Bills/short term bond funds = bonds in my asses allocation. I consider "cash" as what is in my bank checking account and high yield savings. So cash for me is about 2-3 months current expenses. If I have surplus cash, I put it into CDs or T-Bills depending on total return. With that said, I'm as approximately 55/45 s/b of which 0.5% is cash as defined above. Late accumulation phase about 4 years to retirement.

Part of the problem with these types of threads is the varying definitions of cash vs. CD/short term bonds and treasuries. Hard to make any actionable recommendations without agreement on terms.
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