How do you count X? I mean if/when things go bad you would probably spend less unless your X means only essential expenses which I doubt. I’ve been thinking of using something like this: normal expenses 100k but we could cut it to 60k by reducing travelling, eating out, etc. So we should have 600k in safe assets, not 1M. And we would use 4-5 years floor.slicendice,
I often see things like "10-years in bonds" thrown around, but I don't think that would even cover events in US history, let alone world history.
10 years is a reasonable number in a country with an average gross saving rate of less than 5%. The majority lives paycheck to paycheck. It does not take 10 years for money no longer to be the problem.
"I don't think that would even cover events in US history, "
For more than 10 years, it is no longer safe to stay at where you are.
My local food bank is supplying food to 10% of the local population. And, we are not in a recession yet.
https://www.capitalareafoodbank.org/abo ... ank.org%2F
"In a region as large as metropolitan Washington, ensuring everyone has access to good, healthy food takes a significant community effort—which is why we partner with more than 400 nonprofit organizations in DC and the surrounding region. Together, we provide more than 50 million meals to almost half a million area residents, every year. And because we know that food alone won’t solve hunger, we also address the root causes of hunger through multiple education programs and innovative service delivery partnerships."
KlangFool
P.S.: I keep 2 to 3 years of expense in my emergency fund outside of my 60/40 portfolio. My 60/40 portfolio is at 35X. My rebalancing rule says that I will not rebalance below 5 years of fixed income. So, my absolute minimum with fixed income and cash is at 7 to 8 years. There is no reason to keep more than that. I keep a few thousands in physical gold and silver for the absolute worst case if it lasted longer than 7 to 8 years.
Statistics: Posted by Fireishere — Wed Nov 13, 2024 2:24 am — Replies 22 — Views 1694
