Comments on: Keep a long term perspective — but what about retirees? http://www.bluntmoney.com/keep-a-long-term-perspective-but-what-about-retirees/ Wed, 12 Oct 2011 07:20:40 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Michael James http://www.bluntmoney.com/keep-a-long-term-perspective-but-what-about-retirees/comment-page-1/#comment-45145 Michael James Tue, 18 Nov 2008 15:20:50 +0000 http://www.bluntmoney.com/keep-a-long-term-perspective-but-what-about-retirees/#comment-45145 I don't like to tell others what to do, but I can tell you what my own strategy is. I'm invested 100% in stocks for money I won't need for 3 years. I've hear others who are more conservative than I am use 5 or 7 years. This strategy guides all of my financial decisions including tax obligations, paying for my sons' educations, and retirement. If I were about to retire from a full-time job, I would already have 3 years worth of livings expenses in cash or short-term bonds. By default I would be planning to sell some stocks now to get cash to live on 3 years from now. Given that stocks are taking a beating, I'd reduce my expenses to make my current 3 years worth of living expenses stretch into 3.5 or 4 years worth. This would allow me to delay selling stock for a while in the hope that prices rebound somewhat. I don’t like to tell others what to do, but I can tell you what my own strategy is. I’m invested 100% in stocks for money I won’t need for 3 years. I’ve hear others who are more conservative than I am use 5 or 7 years. This strategy guides all of my financial decisions including tax obligations, paying for my sons’ educations, and retirement.

If I were about to retire from a full-time job, I would already have 3 years worth of livings expenses in cash or short-term bonds. By default I would be planning to sell some stocks now to get cash to live on 3 years from now. Given that stocks are taking a beating, I’d reduce my expenses to make my current 3 years worth of living expenses stretch into 3.5 or 4 years worth. This would allow me to delay selling stock for a while in the hope that prices rebound somewhat.

]]>