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You should always have 2-3 years of runway in cash or other safe liquid savings (CDs, Bonds) as you get older (6 months minimum when you’re in 20s and 30s). You
by darth_avocado 2y ago
You should always have 2-3 years of runway in cash or other safe liquid savings (CDs, Bonds) as you get older (6 months minimum when you’re in 20s and 30s). You shouldn’t be really relying on selling assets to pay your monthly bills.
- deleted 2y ago[deleted]
- throw0101c 2y ago> You should always have 2-3 years of runway in cash or other safe liquid savings (CDs, Bonds) as you get older (6 months minimum when you’re in 20s and 30s). Just before and just after retirement it's considered a good idea to go bond heavy to help mitigate sequence of returns risk: * https://www.kitces.com/blog/managing-portfolio-size-effect-with-bond-tent-in-retirement-red-zone/ https://www.kitces.com/blog/managing-portfolio-size-effect-w... * https://www.schwab.com/learn/story/timing-matters-understanding-sequence-returns-risk https://www.schwab.com/learn/story/timing-matters-understand... * https://www.td.com/content/dam/tdgis/document/ca/en/pdf/insights/thought-leadership/Managing-Sequence-of-Return-Risk-EN.pdf https://www.td.com/content/dam/tdgis/document/ca/en/pdf/insi...