Thank you, all, for taking the time to write such thoughtful responses. All will be taken in to careful consideration.
TIPS: I'm a fan and have had a little bit in TIPS ever since they first came out (individual TIPS through Treasury Direct). Not sure how I feel about investing 100% in any one thing tho. jIM_Ohio, do you prefer owning individual TIPS or owning through a mutual fund?
Regarding inflation risk: While I agree wholeheartedly that with a money market account paying the average national rate, cash savings are not going to keep pace with inflation. However, my belief (based on experience) is that with a willingness to rate shop and a high enough cash balance so that you can purchase jumbo CDs, open MMAs with high balance requirements, etc, you CAN keep pace with inflation and usually outpace it by a little bit.
(BTW: Initial withdraw rate = higher than 1%, lower than 2%)
Again, thank you very much for all the comments & suggestions.
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