Kind of a newbie question:
Do you include a) emergency cash and b) your current year’s budget in your asset allocation (AA) percents? Obviously as you spend, the AA percent would change on that alone, so seems like you’d ignore your current year’s budget. This would affect re-balancing regardless of investments, thus my question.
I have a 4 year CD ladder and then spend one rung of my ladder each year. That current rung is my current year’s budget. BTW: I’m retired if that makes the defining easier, since I have no income per se.
I realize the answer can be “do it any way you want” but hoping for a definition by more experienced BH’s. Thanks in advance.
Do you include a) emergency cash and b) your current year’s budget in your asset allocation (AA) percents? Obviously as you spend, the AA percent would change on that alone, so seems like you’d ignore your current year’s budget. This would affect re-balancing regardless of investments, thus my question.
I have a 4 year CD ladder and then spend one rung of my ladder each year. That current rung is my current year’s budget. BTW: I’m retired if that makes the defining easier, since I have no income per se.
I realize the answer can be “do it any way you want” but hoping for a definition by more experienced BH’s. Thanks in advance.
Statistics: Posted by MoneyIsTime — Tue Jul 02, 2024 9:53 pm — Replies 3 — Views 262