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Here's my plan. In retirement (I call it pseudo-retirement because I'll never stop doing the work I love), I plan to carry 3 years living expenses in cash equivalants. Let's say I'll "retire" in 2020, in year 2017 I'd hold back 1 year in cash, 2018 hold back an additional year, etc. ,until I had my 3 years. Up until then, 100% in stocks (sort of).

By default (through adding monies monthly and keeping a small reserve) I do carry about 1/2 to 1 year in cash. One never knows when that life crisis will occur that will change your needs and outlook.

JLC

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