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Keep 3 to 5 years of living expenses in a cash portofolio. Then, invest the rest in your Vanguard account. Keep one mutual fund. My favorite is Vanguard's "Total Market Index Fund". My second favorite is her "S&P500 Index Fund". Use one or the other. Not both. Forget about the other bullshit about foreign stocks etc.

With four years of living expenses in cash, you can keep 2 years in a MMF and the other two years in 1Y CDs. Investigate I-bonds, T-bills etc if you wish. The important thing is to have that cash buffer.

Once a year, sell 5% of the value of your stocks. Put that money into your cash portfolio. Divide your entire cash portfolio by 48 and that's your monthly draw for the year. Do this each and every year. Bull markets, bear markets, and sideways markets. Just sell 5% of the value of your stocks every year and put the procedes into your cash account.
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