My mechanical retirement strategy is to keep 5 years of living expenses in MMFs. Every January, when I rebalance all the components of my portfolio, I sell 4% of my stocks and add that amount to my MMFs. I then divide the MMF total by 60 to get my monthly draw for the year. I do this every year in an unemotional manner. I don't care whether the market goes up or down.Since you have 5 years of living expenses, why not consider this a hedge against a down market and not sell stocks if the market is down?
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