Some individuals like to rebalance their retirement portfolios at the beginning of the year.
Are you raising more cash for your emergency/short term buckets given that the markets are back at all time highs?
Instead of 4%, why not skim extra for splurging?
Time in the market beats timing the market.
Yoiu should of course be holding cash if you think there will be a recession. Personally I am fully invested most of the time.
So what is your withdrawal strategy if you are always in the market?
Do you sell when the need arises?
Exactly. No one knows what the market could do in the next year. Could go higher, could go lower. No one knows.
Here’s what I did in a rising market at the start of my retirement in 1994.
How I used the 4% rule over the past 29 years (retireearlyhomepage.com)
intercst
Splurging is already included in my calculations. Well, just doing what I enjoy. If it’s not in yours, you could end up overextended.