No. of Recommendations: 0
<<<Just as a clarification, isn't the idea to each year transfer one year's worth of living expenses out of equities and into cash/equivalents if the market has a good year, but if the market is down (like this year) you'd continue to leave your equities untouched and continue to just draw down on your CD's or MM funds? >>>

It has been my understanding that each year you replenish a year's worth of living expenses from equities reguardless of how the market does. The thought being, with that five year cushion in cash, you have enough time to recover from any loss to make up for that loss plus the living expenses you've been withdrawing. Obviously they're innumberable permutations on what you can do. Personally, I'm going to take 5% out of equities each year, so some years will be more and others less.

JLC
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement