Really, what IS cash

[Al in Ohio]

Any retirement accounts that are deferred or exempt from taxes are tied to regulations that do not make them liquid. They would not be considered cash.


Cash is cash, silver or gold, bank accounts that are fully taxable, and what's in your wallet or piggy bank.

 

[CaliforniaMan]

I'm confused why anyone would have money in vanguard or other money market paying .01%. The online savings from Amex/Ally/etc pay about .8% and are FDIC insured.

Currently I use a Vanguard MMF for my calculated cash draw for the upcoming year. I keep this in my taxable retirement account since there is the possibility I will make some other income during the year, which would not require me to take the full draw from the taxable retirement funds. Hence I save on taxes that I would have to pay on the withdrawal. On the other hand, it is there should I need to take the entire withdrawal. It just simplifies things for me, and the tax consequences are potentially greater than the small loss in interest income.

 

[mickeyd]

What really is cash?
I think cash is..
• Anything in the bank
• Anything in my wallet

I rarely have more than $20 in my wallet.

To me cash is what is in my Ally online account (.87% APY)+ what is in my USAA savings acct (APY 10%)+ what is in my USAA checking acct ($1000) + the balance of my VG STB fund.

It all adds up to about 18 months of expenses at our place.