Yeah, I don't mind a cash allocation. I'd prefer it to bonds, personally. Something like 95/5 equities/cash... maybe even 90/10.
Studies have shown it doesn't improve returns (i.e. the theory that you live on the cash when the market is down, to ride it out, then fill it back up with the market recovers is bunk) because most of the time the cash is just acting as a drag. But it can help the sleep at night factor to know you have a few years of cash in the bank when the markets are crashing and everyone is saying the world is ending.
having cash buffers yields pretty much the same results as not , providing you do not get whacked with a moderate extended downturn early on .
after the first up cycle , yep , no difference but getting hit first is like a trader having a string of losing trades in the beginning .
a rising glide path or the higher cash flow rates from using an spia with your own investing are good defense's for mitigating the early hit .
we went with a rising glide path . so far we are glad we did as so far there was not enough gains to cover spending since we retired so we are burning principal up front .
although we are retired a year this week i was part time prior so we we were spending down the year prior to retiring .
but after an up cycle cash buffers are only comforting to the mind .
i use 2 years cash on hand since my mind likes it . so far no assets other then cash have had to be used but by our 3rd year we will have to create more cash likely from sales unless distributions and dividends pick up .
but in reality not reinvesting them is still spending them down .