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Participant ○

% you keep in cash

What percent are you keeping in cash?

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22 Replies
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Participant ○○○

Re: % you keep in cash

I do not go by a set percentage.  Rather I evaluate what I might need cash for and keep that.  The rest is almost totally in stock funds.  For cash reserves I need the money for a new vehicle and a new HVAC.  I might be losing out on some return, but it gives me peace of mind and I can ignore the hysteria when the market drops. 

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Frequent Contributor

Re: % you keep in cash

12% of my total portfolio.

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Frequent Contributor

Re: % you keep in cash

50% currently.

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Frequent Contributor

Re: % you keep in cash

0%. My “cash” is S/T bond ETF BSV.

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Participant ○○○

Re: % you keep in cash

No less than $100,000.  (spending money)

Gabe

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Frequent Contributor

Re: % you keep in cash

With about 50% effective-equity, there is 50% in variety of bonds and "cash". But "cash" is mostly in ultra-ST- & ST- bond funds and 3%+ SV; not much in m-mkt funds. 

Note that ST corporate VSCSX shows 18.6% effective-equity, ST core VBIRX only 10%, ultra-ST FCONX only 6%.

Effective-equity is SD_fund/SD_sp500 using PV.

YBB
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Participant ○○○

Re: % you keep in cash

Enough cash to cover expenses for 2-3 months.

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Frequent Contributor

Re: % you keep in cash

Some definition is needed for cash; whether it is for living expenses for a period of time (say six-month) or it is "fixed income" (vs equity; e.g., stable value fund/bonds) allocation in one's retirement portfolio.

I thought that it is the cash available for near-term expenses; that I put in Reward Checking Accounts.

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Re: % you keep in cash

General definition of cash is anything with 3 mo or less maturity. M* definition of cash is anything with 12 mo or less maturity - that why M* %cash for funds often differs from that from funds. I used "cash" for portion that I can liquidate without blinking to withdraw or deploy elsewhere.

YBB
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Participant ○○○

Re: % you keep in cash

Since January 2006 we start every year with 5% of port in cash.

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Participant ○○○

Re: % you keep in cash

Since March 2020 we’re holding 10% in cash (mmkt settlement funds; checking account).

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Frequent Contributor

Re: % you keep in cash

I don't believe in cash unless I can't find where to invest.  In the last 10+ years I was in cash about 12 weeks,  12 / 520 weeks = 2.3%.  This basically means that I was invested at 99+% at about 98% of the time.  Right now invested at 99+%. I don't see why I need more than several thousand in cash/MM.

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Participant ○○

Re: % you keep in cash

Currently 8% is in a MMF (money-market fund) in my main 403b retirement account. Equities are 51%. The rest is in bond funds and TIAA "traditional." I draw monthly RMD payments to my bank from the TIAA MMF. These withdrawals from the 403b are subject to federal income tax. (Both Social Security and RMD's taken from my 403b are exempt from state income tax in Michigan.)

ADDED: I do all my banking at a federal credit union. If I need a lot of cash in a hurry I have a $60K HELOC (currently zero balance) at this credit union, as well as small savings/cash accounts (share account, escrow account) and a Visa account with ca. $30K LOC (also zero balance currently).

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Re: % you keep in cash


@jmrdnc wrote:

Enough cash to cover expenses for 2-3 months.


This seems the most sensible answer, as the percent of a very large portfolio might be excessive at 5%, while another person's portfolio at 15% in cash may not be enough. 

Personally, I keep about 6 months living expenses in my online savings and another two months cash in my local bank account.

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Participant ○

Re: % you keep in cash

Keep several months of expenses in checking, add a few $100  distributions monthly from just over 1 years expenses invested in CEF's each month, considering transferring a large 6-figure amount in very early July from TREA to ultra short-term bonds to side step negatives in TREA and to allowing repositioning for better returns in the TIAA brokerage account.

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Re: % you keep in cash


@hku wrote:

What percent are you keeping in cash?


         Generally 5-10% cash. Currently 5% and climbing until the next correction or market swoon. 20% in a national muni, so near cash to me. That’s climbing also. 70- 75% actually invested at high risk meets our needs.😷

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Participant ○○○

Re: % you keep in cash


@yogibearbull wrote:

With about 50% effective-equity, there is 50% in variety of bonds and "cash". But "cash" is mostly in ultra-ST- & ST- bond funds and 3%+ SV; not much in m-mkt funds. 

Note that ST corporate VSCSX shows 18.6% effective-equity, ST core VBIRX only 10%, ultra-ST FCONX only 6%.

Effective-equity is SD_fund/SD_sp500 using PV.


I hold the Vanguard GNMA SEC yield is 1.73 and Vanguard Short Term Investment Grade SEC yield 1.43.  Duration 2.5 What do you think!

Gabe

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Re: % you keep in cash


@youth wrote:

@yogibearbull wrote:

With about 50% effective-equity, there is 50% in variety of bonds and "cash". But "cash" is mostly in ultra-ST- & ST- bond funds and 3%+ SV; not much in m-mkt funds. 

Note that ST corporate VSCSX shows 18.6% effective-equity, ST core VBIRX only 10%, ultra-ST FCONX only 6%.

Effective-equity is SD_fund/SD_sp500 using PV.


I hold the Vanguard GNMA SEC yield is 1.73 and Vanguard Short Term Investment Grade SEC yield 1.43.  Duration 2.5 What do you think!

Gabe


Effective-equity for  VFSTX is 15.33%, for VFIIX 14.05%.

If I may point this again, my point was that ST-corporate bonds have as much volatility as IT core bonds, and this is seen again here for ST corporates VFSTX and IT GNMA VFIIX.

ST corporates have as much volatility as conservative-allocation1 15-30%.

YBB
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Participant ○○○

Re: % you keep in cash

5% now, but if the market crashes, I'll go down to zero. I've a HELOC sitting still untapped if I need actual cash in an emergency, so I can skate close to the edge.

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