Reply to How much to keep in cash in retirement?

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Reply to "How much to keep in cash in retirement?"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]“Cash” definition can be a little fluid. Are you asking about literal cash or liquid funds like CDs, TBills, MMFs and for some bond funds and brokerage?  For us, we consider cash a combination of cash, savings, CDs, MMFs and bond funds. In a vacuum, we like having three years worth of spending in our “cash”. We also expect that at some times we can go lower or higher (2 or 4 years) depending on market. We also think that our preference is considered conservative by some, but it’s our comfort level.

Will you be converting those tax advantaged accounts?  You’ll probably want to pay that tax bill out of “cash”.

Lots of moving parts, everyone’s answer is individual. It’s good you have planner but I would also consult your tax accountant. Hopefully they’re different people. 🙂[/quote]

The cash we have is all in a money market account.

Regarding conversion of tax advantaged accounts, that's an interesting thought. Would that be a more prudent thing to do before investing? [b]Unfortunately we will have some high tax bills due to exercising the rest of our options over the next few months[/b], so not sure the timing is good for converting the accounts.

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This is a very questionable use of the term "unfortunate."  [/quote]

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