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The fixed income portion of your Retirement Portfolio is likely more than enough.

https://www.thestreet.com/retirement/fidelity-chal...

Even though I'm 97% stock, the 3% in bonds and cash is 10 years' worth of living expenses (prior to starting SS last year) and more than enough to replace an automobile or my home. That's why I don't have collision and comp on my automobile and only insure about 10% of the value of my home, just enough qualify for liability coverage. As my Causulty Actuary little brother explains, if you can shoulder the risk, there's no reason to add the expense and hassle of dealing with an insurance company to a loss.

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Here's the study backing up Fidelity's analysis.

https://crr.bc.edu/how-much-are-emergency-expenses...

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The results show that the typical retired household spends 10 percent of income on unexpected expenses in a normal year.

I don't believe this one single bit.


unexpected expenses could be a source of financial stress for which many retirees are unprepared, especially those with lower incomes.

Duh. Flash! Life is hard when you are poor.

I stopped reading there because it is just stupid. (Great quote from manosphere.)
I manfully won't say anything about the authors or their employer.




When you are retired, your entire net worth is you "emergency fund".
If your net worth is measured by how much gas is in the car, you are in trouble.

“When you are retired, your entire net worth is you "emergency fund".”

I think it’s mentally useful to think about buckets, but in reality we know there’s no good way to determine when to empty and when to refill. So you figure out an asset allocation you think you can stick with and do just that.

OP can be 97% stock because his withdrawal rate is zero. Not going to be the case for most of us. I’ve got two kids in undergrad and one in med school. My WR won’t be zero for a long time, if ever.

Our bonds and cash adds up to about 15% of net worth. Typically has been 10% but I’m transitioning into retirement and been feeling like we need more ready funds.

Berkshire is about 35% tbills 65% equities (including wholly owned businesses. For comparison.

{{ Berkshire is about 35% tbills 65% equities ))

Yep, the cash position of my BRK stock is 3 times what I hold in cash and bonds myself.

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