[USER]

Crowd sourcing here – somewhere between 2-5 years from retirement and will be 49-52. Worried about sequence of returns.

What is your opinion on how many years worth of cash/safe investments I should have to draw down in case I’m unlucky enough to retire during a downturn?

I have very little NOT in equities amd realizing I should have protected more.

So hoping this dip recovers and I can protect more- wondering how much.

Just curious, I’ve heard a lot of theories and wondering what advice people have.

[Farre]

I plan on 18 months of expenses in HYSA. Most of my others are low-risk things like bonds or steady companies likely to do well long-term.

[Kerry]

I FIRE’d in 2021 and had 3 years’ expenses in cash/fixed income. After the downturn in 2022, I decided I’d be a lot more comfortable with 5 years’ worth, so that’s where I am now.

Also, when planning out your expected expenses, don’t underestimate the cost of health insurance.

Ours has increased 16%-25% each year!

[Eric]

The general rule for investments in general, don’t invest in stocks any $ you might need in 5 (min) -7 (avg) (worst is 9-10) years.

This is the general rule guideline.

You need to pair this with your potential income and your level of comfort with risk.

[Author]

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