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In my opinion you do not. The 5 year cushion is to prevent you from having to withdraw funds from your portfolio during down years. If you do not have to regularly withdraw from your retirement portfolio you should not need the cushion. Also, probably if you are drawing less than 2% of the portfolio it is probably not necessary.

It largely goes with how strong your stomach is - or your wife's stomach. My wife is much more concerned than I am and insists on the 5 year cushion. I am working on it just for her peace of mind.

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