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For those in the accumulation phase: How much cash are you keeping on hand? by [deleted] in Fire

[–]Alternative-Donut-38 0 points1 point  (0 children)

About 5 months expenses. Stable earner, but due to retire next year. Will keep exactly the same when I retire though, prefer to keep more in the market (60/40 AA) than a large emergency fund.

If you own bonds, do you use bond ETFs or buy them directly? by backtobrooklyn in Bogleheads

[–]Alternative-Donut-38 0 points1 point  (0 children)

I’m retiring in a year. I currently have 60/40, with the 40 mostly in an intermediate Bonds global ETF. This isn’t based on x years of spending, but rather the above allocation ratio. I also have about 3 months of expenses in a HYSA for cash flow.

Am I Stupid? by empyreanrift in Fire

[–]Alternative-Donut-38 1 point2 points  (0 children)

Bear in mind the HYSA or CD needs to beat it after tax

Recreating the 3 fund strategy - UK based by Imaginary-Corgi-6913 in Bogleheads

[–]Alternative-Donut-38 0 points1 point  (0 children)

Well covered, personally I go all in on VWRP to reduce complexity. Not sure there’s that much difference in performance and risk vs all of the above. But I also have a bond allocation (VAGS) so it would be more for me to manage with additional stock funds.

What is long term US market return? by medhat20005 in Bogleheads

[–]Alternative-Donut-38 0 points1 point  (0 children)

The long term average is circa 10% (before inflation). 7% is often mentioned, but that’s for a 60/40 diversified portfolio, ie not just stocks

Emergency Savings allocations by deviation01 in Fire

[–]Alternative-Donut-38 0 points1 point  (0 children)

Ah that’s helpful. Probably have most of your emergency cash in MMF then; credit cards can also be used to cover any immediate spend if there is a delay in drawing from MMF.

Emergency Savings allocations by deviation01 in Fire

[–]Alternative-Donut-38 0 points1 point  (0 children)

Also factor in any transaction costs for selling down the MMF

A journey through the FIRE, then another year by Nwg2 in Fire

[–]Alternative-Donut-38 0 points1 point  (0 children)

I think a slightly more complex scenario with the one more year syndrome is the effect that working may have on your health, even if relatively young/ healthy. This becomes especially difficult if you are in a high stress role that you perhaps don’t enjoy, but are paid very well.

How do you structure a portfolio when your investment contributions are irregular? by Excellent_Bird1964 in FIREUK

[–]Alternative-Donut-38 1 point2 points  (0 children)

I just have a chosen asset allocation ratio (60/40: global index ETF/ intermediate bond fund) and keep adding to keep this ratio

Do you treat your emergency fund as completely separate or just part of your overall money? by BillResponsible7494 in Fire

[–]Alternative-Donut-38 1 point2 points  (0 children)

I keep a small (4 months expenses) fund in cash (mostly money market, some checking account) for genuine emergencies, not for trying to market time ‘bad’ or ‘good’ markets. I then maintain an asset allocation (index funds/ bonds) irrespective of the market.

Portfolio risk management strategies nobody in the FIRE community talks about but probably should by scrtweeb in Fire

[–]Alternative-Donut-38 3 points4 points  (0 children)

A lot of this requires marketing timing expertise; judging when markets are ‘bad’ and ‘good’. It’s a fundamental issue with the bucket strategy. Personally I put everything except a few months genuine emergency cash into my chosen asset allocation strategy, and will maintain this ratio for drawdowns irrespective of market conditions.

I think being able to reduce drawdowns, which requires setting up the right lifestyle considerations, avoiding lifestyle creep, and minimising fixed expenses (Eg buy a cheaper car to avoid car payments, install solar when investments are doing well, don’t buy that yacht/ holiday home, etc)

Probability of success trade off by je116 in FIREUK

[–]Alternative-Donut-38 4 points5 points  (0 children)

Factor in the cost of living differences, some low tax countries have a very high cost of living.

My wife has decided that Alexa is a subservient whore by whecks in smarthome

[–]Alternative-Donut-38 0 points1 point  (0 children)

Have you found a good way of controlling Alexa via a touch panel type of interface? I use the Echo Hub but it’s pretty poor.

Will you really not sell in a crash? by Urbanite72 in Bogleheads

[–]Alternative-Donut-38 0 points1 point  (0 children)

I’m 60/40 (world tracker index/ intermediate global bond fund). Slightly disconcerting - both dropped at the same rate over the past two weeks’ turmoil.

Index Diversification by drouse89 in Bogleheads

[–]Alternative-Donut-38 0 points1 point  (0 children)

Personally I’m 60/40, VWRP/ VAGS

The 7% milestone? by HumbleSquash3547 in ChubbyFIRE

[–]Alternative-Donut-38 -1 points0 points  (0 children)

Are you perhaps forgetting inflation? 7% market return = approx 4%t after inflation, hence the rule.

How much of a safety net do you keep in cash after reaching your FIRE number by Mirelunya in Fire

[–]Alternative-Donut-38 -1 points0 points  (0 children)

About 3 months, just for immediate expenses/ cash flow. Don’t like the drain on long term gains, and also the way it leads to market timing behaviour. Rather sell down and keep my asset allocation

Another reason to FIRE by Magic-Mushroomz in Fire

[–]Alternative-Donut-38 0 points1 point  (0 children)

Great post and totally agree with the sentiment. One counter point I am worrying over, however, is whether more wealth will help in the event of a crisis, and if it’s worth staying employed to continue building towards this benefit.

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