The Lemon Fool

DiamondEcho wrote:
If it's no longer wise to progressively phase into fixed-income and remain in stocks instead, then the wisdom of maintaining a reasonably budgeted cash-buffer appears higher.

I'd go further than that and say that it appears to be critical to such a strategy....

In my opinion it's absolutely key to maintaining largely full exposure to high-yield investments with the rest of the pot, and I can't imagine being comfortable at all with cash or near-cash of less than at least a couple of years worth of income.

In addition to that, a dividend income with some good margin to spare over the expected requirements is also a key aspect in my long-term plans, with a view to re-investment of the spare income to help maintain and grow that margin.

I expect this dividend-margin aspect to fluctuate somewhat, but along with a back-up pot of near-cash income if it's required, I think these two aspects will form the majority of my 'Plan-B' options for when the expected market-downturns come around.

Cheers,

Itsallaguess