Why I'm Transitioning to 80% CashI'm the 37-year old guy, married with a young child in a two-income household. As much as I believe in the power of stock investing, particularly dividend-paying growth stocks, I did some near- and long-term planning and came to somewhat atypical conclusions. First, I thought about my primary goals, objectives and concerns. The things that keep me up at night, in no particular order, are:
- I want the ability to retire and work only as much as I desire ASAP.
- Put the kid through college.
- Cut expenses as much as possible; reduce fixed expenses, but have the ability to live a similar quality of life in retirement; travel; work sparingly.
- No debt and no rent or mortgage payments.
- We pay about $2,000 a month in rent -- a relative bargain given our location.
- In less than a year, we will have, with the exception of pesky student loans (I got burned by the private student loan scheme), no debt. Even our one car will be paid off.
- We have seen considerable monthly cash flow over the last two years.
- We have a more-than-ample emergency fund.