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Subject:  Re: Retire Early & 4% Withdrawal Date:  3/5/2021  4:01 PM
Author:  1poorguy Number:  101528 of 103189

As AJ said, keeping cash is conservative. Absolutely nothing wrong with that, but just clarifying what you're doing.

Also, my post was what I'm comfortable with, and should in no way be construed as advice. More "things to think about". If I could find that TMF article I would link it. But note that it was an op-ed from a TMF contributor, and you could just as easily find contrary TMF articles. I've read several on both sides of the question, and I tend to agree with the one that says you shouldn't change your allocation so long as you can devote the same amount of attention to the investments.

For example, I have V and COST. They go up, they go down, but mostly they go up. Their businesses are pretty easy to understand. They don't take a lot of monitoring. I could go on vacation and not check on them, and not lose any sleep. Depending on your investments maybe you need to monitor them more closely. Maybe a biotech is having poor results in trials, and may not get FDA approval...that could tank them. Hypothetically.

I plan to take our annual expenses, divide by four, and sell whatever investments are necessary to have that cash available every quarter. Sometimes I'll be selling during a dip, other times while it's going up. Plus I'll have at least another quarter's cash as a reserve (maybe even 6 months). I haven't retired yet, but that's my thinking at this point. Subject to change as new info become available.
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