Since retiring, I have been defining near term as 3-5 years. While working, I probably would have considered near term as one year, since we would have more stability with a regular income.
Here are some examples of our near term fund needs we want to protect in retirement:
Here are some short term fund needs we will want to protect for the future:
Although I don't expect to need one again, I would consider a home down payment as a near term expense that would be important to keep in non-volatile investments.The non-volatile investment instruments I use are cash, money market and CD accounts. Although these are paying very low interest rates, I can be confident that the principal will be available when I need the money.
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This is not financial or investment advice. Please consult a professional advisor.
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