Makes you wonder how much money do the "experts" think people have? 3-5 years worth of cash seems like more than a lot of people will have access to unless you sell everything. To me that doesn't seem very realistic. Maybe I'm just poor and out of touch with reality?
3-5 years of cash in retirement. If a retiree can't come up with that, they probably shouldn't be retired.
I have no idea what your annual expenses may be. If your annual expenses are $50K, then have $150-$250K available in cash, CDs, money market funds, and/or bonds.
I’m not a financial guy. So my thoughts are for entertainment purposes only . Lol
Admittedly, I can be a contrarian by most folks account when it comes to approach to personal finances. But, while this sounds like good advise on the surface (who would say having cash is bad?) But reality is that your buying power will shrink every year because of inflation. ESPECIALLY when we have nobody on either side of the isle that is a fiscal conservative in our nation’s capital.
For us, that is less risky that holding cash in retirement. But I also understand that isn’t for everyone. So you're selling what?
Admittedly, I can be a contrarian by most folks account when it comes to approach to personal finances. But, while this sounds like good advise on the surface (who would say having cash is bad?) But reality is that your buying power will shrink every year because of inflation. ESPECIALLY when we have nobody on either side of the isle that is a fiscal conservative in our nation’s capital.
Our contrarian approach is to invest in assets which has valuation growth that grows faster than inflation AND give a positive cashflow. Then, when that positive cashflow exceeds annual expenses, a person will be in a position to leave our primary jobs—if they want to.For us, that is less risky that holding cash in retirement. But I also understand that isn’t for everyone.
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Love the way you roll Gator. Anyone with access to a 401K MUST find a way to fund it to the max first and foremost. With matching funds from most companies...an absolute no brainer.
My wife and I have been maxing ours out for the last few years. Now, when that coincides with the greatest run in stock market history you start making serious coin and the pain of maxing out is a lot easier to take.
Technically, it may depend on your expected tax status during retirement on whether or not you should first max your 401K or Roth IRA first. For many young people, it makes more sense to contribute enough to get your employer match on the 401K, while contributing to the IRA until you max that out, and then switch to the 401K. It seems tedious, but the pre and post tax nature of both investments benefit some individuals more.
So you post a clear sales pitch about "our contrarian approach" to investing but it's only about your personal finance decisions? mmmk
