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Explorer ○○

Re: % you keep in cash

Cash is always a "variable" in the scheme of things. When markets are correcting, and depending on the analysis of one's portfolio vs current Mkt conditions, some of us would keep 25% to 40% in cash. Taking one's CapGains and going to cash is important for investing into the next leg "UP" [IMHO]....

 In collapsing markets, like in 2008/2009 and in Feb/March of this year, 100% cash was important for our protection of capital. Those investors who started to re-enter the market in late March have been rewarded....

 One single opinion of the many I am sure....

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Contributor ○○○

Re: % you keep in cash

Many different definitions, purpose, and usage for "cash."  

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Frequent Contributor

Re: % you keep in cash

My portfolio has been generating 4%+ and most of the distributions are accumulating in Fidelity Core so this have been providing me sufficient cash to draw off to pay my gap expenses so I have not had to sell any investments.  I am prepared for worst case if all my distributions were to dry up I have almost 10 years of gap expenses in bond OEFs that I could tap.  I also have a Roth IRA that has liquidity in bond OEFs that could be tapped to carry me another few years.  And this is all in my Bucket 1 so I can keep track of my liquidity bucket.  The rest of my money I can confidently spread among more risky and volatile assets.  A plan with multiple sources of liquidity that can be tapped irrespective of where Ms. Market is at any point in time is key for me.  

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