Cash and equivalents are Bucket One, and hold three years of expenses. Another five years of expenses in Bucket Two include intermediate treasuries, bonds, and dividend-paying stocks. Bucket Three includes equities I don't need to touch in a down market. I don't consider "opportunity costs" of this approach. It beats having to sell equities in a down market to pay your expenses.
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Cash and equivalents are Bucket One, and hold three years of expenses. Another five years of expenses in Bucket Two include intermediate treasuries, bonds, and dividend-paying stocks. Bucket Three includes equities I don't need to touch in a down market. I don't consider "opportunity costs" of this approach. It beats having to sell equities in a down market to pay your expenses.
Post: Too Much Cash?
Link to comment from November 17, 2022