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You know your needs, resources and priorities better then anyone. That said from my view point setting asside 10 years worth of fixed income is very, very conservative. Today things look very dark, but my gut tells me that within 5 years inflation will be a noticable (if not greater) event.

Are your fixed income investments structured in a way that 8 or 9 years out, your income could climb with inflation if moderate inflation develops? For example if we experience 3% inflation for 6 years, each after tax dollar will be worth $0.83 - add some tax increases for government spending to cover their inflation costs and it is real easy to see the purchasing power in the 70 cent range.

If you decrease the number of years from 10 to a smaller number, you reduce this inflation risk, but obviously increase the market falling risk. (My gut tells me people will be more careful about market falls then inflation - inflation has not been a big issue since the late 70s.)

On the other hand you certainly have a system that can run on autopilot.


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