No. of Recommendations: 1
We’re retiring next year. I’d put the proceeds in cash and bonds to cover living expenses for the next few years in case the markets shyte the bed.
If you're retiring next year, I hope you've already moved a goodly amount out of stocks and into fixed income to begin the "ladder" of money that you will need to cover expenses every month/year. Then, each year (each month, whatever), you have to decide whether that is a good time to sell more stuff or not. And I'd definitely agree that now with Apple at a 38+ P/E might be a good time to sell a little. Sure it might rise even higher, and probably will over time, but the money is needed NOW, and next year, and the year after that, etc. That's what I've been doing for 4+ years now.
On the other hand, cash and bonds are generally terrible because they have a net yield of near zero (after taxes and inflation). And you can't abide by a net yield of near zero for too long on too much a potion of one's assets. So it's a balancing game, and partially a guessing game.