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Cash Position
Old 01-28-2016, 09:11 AM   #1
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Cash Position

While quite a few fund managers have been increasing their cash positions, El Erian is advocating for a pretty large cash position, see Time to put 30% of your assets in cash: El-Erian - Jan. 28, 2016. I am actually higher than that at the moment, although it does leave me wanting to get back closer to my target allocation. I liquidated some holdings earlier this month that were using a sector rotation strategy that was underperforming and too costly expense wise, so will gradually redeploy the $s to some lower cost active and index funds as opportunities arise. I like to have a mix of both active and passive type investments. Anyone else holding much cash this year?
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Old 01-28-2016, 10:40 AM   #2
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about 10%...with the paltry interest available on short-medium terms, it's pretty cheap insurance to have, against the possibility of interest rate increases and equities declines.
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Old 01-28-2016, 10:45 AM   #3
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I had a 10% CASH position but lowered it to 2.5% when we dipped the last time.

I have one final opportunity to buy with that little 2.5% cash position. May sell some winners on the next bounce to free up more cash.
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Old 01-28-2016, 10:49 AM   #4
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I am right about at 10% right now. About 7% in a CD earning 2.25% and 3% in regular savings earning .25%.
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Old 01-28-2016, 11:24 AM   #5
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10 percent
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Old 01-28-2016, 11:38 AM   #6
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We're about 60% cash right now. I had rolled my 401k and DW exercised some options just before the recent drop. Wish I could claim expert timing, but we were just pretty lucky. Slowly buying back in.


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Old 01-28-2016, 12:07 PM   #7
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I'm about 33 % cash at the moment in non-tax sheltered accounts. Sheltered accounts, about 10%.

Of course I am collecting annual RMD's and they spit out cash each year. Right now we have 10 years worth of cash to cover expenses that SS doesn't cover. That available cash is earning 1 - 1.5% (short CD's, ALLY MM). I know that inflation is partially eating us up, but we are moving to lower risks at these ages (both over 70).

Most sheltered funds are in Vanguard Wellington, Wellsley and S&P index funds.

Seems safe for an older guy and gal. No annuities, thank you.
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Old 01-28-2016, 12:45 PM   #8
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90% cash now. Was at 80% until early this afternoon. I would like to get to 30% when we see a 17 handle.
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Old 01-28-2016, 01:06 PM   #9
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I have 8.4% in cash if you include the cash earmarked for 2016 expenditure.

BUT - - I also have:
  • SS
  • Medicare
  • a 45:55 equities:fixed AA
  • a paid off house and contents
  • a paid off Toyota with only 23K miles on it, and
  • an itsy bitsy teeny weeny federal pension
So, I consider myself to have all hatches battened down and I'm ready just in case the doom'n'gloomers are finally right, for once!
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Old 01-28-2016, 01:25 PM   #10
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I was holding about 30% cash due to using CD's in lieu of bonds. I made a tactical decision to re-classify long term CDs (e.g. 24 months or more) as "bonds" and now my cash is only 20%. My target is 15%, but I am kinda stuck with the CD's until 2Q17.
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Old 01-28-2016, 02:47 PM   #11
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I do have the 30% cash or short the instruments. This equates to 10 years of living expenses which lately does done very well as the dollar went from 15 to almost 19 pesos. I took advantage and transfer 2 years of expenses at almost 19 pesos. I do not need the money but planning on buying some cattle for diversification.
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Old 01-28-2016, 03:00 PM   #12
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20%
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Old 01-28-2016, 03:02 PM   #13
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Old 01-28-2016, 03:18 PM   #14
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12% cash at present, but we intend to buy a house in 2017 which will consume all of that (and more).
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Old 01-28-2016, 03:43 PM   #15
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Only when I need to pay bills.
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Old 01-28-2016, 04:39 PM   #16
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Not sure what % I am in cash but it amounts to about 4-5 years of expenses. That is exceptionally high for me, but I am accumulating cash in anticipation of a large expenditure in several years.

If I were not in this cash-accumulation mode I would not abandon my stocks for cash. Why should I abandon my AA for this Allianz executive? I saw a recent Charlie Rose interview that he had and find him very interesting to listen to, but lets face it, he's no Bogle.
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Old 01-28-2016, 04:44 PM   #17
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Cash position is 9.4% representing ~5 years expenses.
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Old 01-28-2016, 04:59 PM   #18
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15% here. Covers 5 years expenses. Not retired just yet......Soon.
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Old 01-28-2016, 05:04 PM   #19
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At 8% but am looking to reduce to 5%.
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Old 01-28-2016, 05:34 PM   #20
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Counting checking and saving (non portfolio) it's at 14%.
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