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I think the goal is to have some sort of a ladder, i.e. 1 yr, 2 yr, 3 yr, 4 yr and 5 yr CDs or treasury notes. This way each year you have the option of taking the money out of the CDs if your portfolio is down, or roll the CD back into a new 5 yr CD and take money out of the stock portfolio if the market is up.

You can have any combination of money market funds, CDs, Treasury Notes, Bonds, etc. just nothing long term (longer than 5 years.)

You can build the ladder over 5 years by each December buying a 5 year note or CD. At the end of the 5 years you have the ladder. lol.

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