Post #2391 by Aussi on the Mechanical Investing board

Investment Strategies / Mechanical Investing

Unthreaded | Threaded | Whole Thread (27)

Post New | Post Reply | Report Post | Recommend It!

No. of Recommendations: 2

I'm with Rayvt on not having a cash bucket, unless you have some definite rules on when to use the cash and when to replenish.

If you are using $x per month in retirement, where do you take the $x from? If you take from your cash bucket, you no longer have n years of cash. Does that mean you sell stocks/bonds to replace the cash? If you take from your portfolio, why have the cash bucket?

Perhaps you take from the cash bucket if the monthly return is negative? If the monthly return is negative, perhaps you take from the stock portfolio because you think the trend is going to continue??

I think, no cash bucket.

Aussi

Post New | Post Reply | Report Post | Recommend It!

Print the post

Unthreaded | Threaded | Whole Thread (27)

Prev | Next

Announcements

Mechanical Investing FAQ

Contact Shrewd'm
Contact the developer of these message boards.

A community forum supporting civilized, and highly helpful, self-educating investors that come together for shrewdness and merry spirits. These message boards closely follow the look and feel of the old message boards at boards.fool.com prior to the boards redirected to discussion.fool.com. Shrewd'm is not affiliated with the comprehensive and excellent investment website, The Motley Fool (TMF), in any way. The Shrewd commmunity here has owed, and continues to owe, gratitude to The Motley Fool for nurturing a culture of jovial irreverence towards Wall St, and that tradition will continue here.