Cash Positions

[kyounge1956]

100% currently, earning > 6% fixed, government guaranteed (in Australia).

Sounds good. In the past 5 years the AUD has appreciated nearly 40% vs. the USD.
What's your inflation rate?

Indeed it does! What pays 6%, short term government bonds? Must one be an Australian citizen to buy them?

 

[ripper1]

10.7 and languishing in an online account making 1%. Losing money essentially due to inflation. I guess some people need their chicken money.

 

[W2R]

10.7 and languishing in an online account making 1%. Losing money essentially due to inflation. I guess some people need their chicken money.

Sure beats selling low to pay for living expenses when the market dives.

 

[ripper1]

I heard that, W2R. By the way have you taken off your crash helmet.

 

[W2R]

I heard that, W2R. By the way have you taken off your crash helmet.

Never! I'm a belt-and-suspenders kind of gal...

 

[RetirementColdHardTruth]

Moved to 40% cash on Thursday. Sold all my bonds as the market was down 15% from recient highs. Looking for oportunity to buy bonds on the dips.

 

[Closet_Gamer]

In addition to a 1 year emergency fund, I keep about $15K of working cash, and about 3-5% in my investment portfolio in cash. I use the 3-5% to buy on dips, so that occassionally goes down to zero.

I'm not retired at all. Not YET anyway ;-)

 

[eytonxav]

My target allocation is 10%, but right now sitting at 46%. I'm still concerned about the lack of jobs, depressed real estate market, european mess, huge deficit and a gov't that can't agree on anything.

 

[grasshopper]

Retired I am at 1%, but ready to pull the plug on another year of expenses out of a short term investment grade fund.

 

[JmfromTx]

Ample cash, MM, and short term bonds in taxable to take me to SS at 62. I made my bed conservatively when I retired and I'm very comfortable sleeping in it.

 

[pb4uski]

6.3% in cash, ~1.67 years of expenses.

 

[obgyn65]

Same for me. Zero in equities. About 3% in municipal bonds. That leaves about 97% in cash, CDs, or equivalent. No annuities (yet). Not retired yet, but retiring next year, age 47, with annual withdrawal target between 60k and 100k x 50 years.

100% cash which includes IRA CD and bank CD's. Zero in equities or bonds.

 

[GregLee]

So, to summarize the investment experience and expertise of this group, you want to hold from zero to 100% in cash.

 

[justplainbll]

so, to summarize the investment experience and expertise of this group, you want to hold from zero to 100% in cash.

aka 50% ?

 

[GregLee]

aka 50% ?

No, I mean to be saying that we're all over the map on this issue. There is no agreement.

 

[MDJO]

At 10% on cash - about 18 months living expenses

 

[vttlarry]

I have approx. 2 years of living expenses in cash. Retired, wife still working.

 

[youbet]

2% cash from an AA viewpoint.

However, in terms of emergency cash, family needs, etc., we have a CD ladder with CD's coming due periodically that would cover our spending needs for several years if that situation manifested itself.

 

[Animorph]

Clearly there is a spectrum of goals, risk tolerance, and at least in my case, timing. I'm trying for 100% equities, but because the market peaked above my retirement projections I was able to move into cash a bit this year. I've reinvested some in the following dip, but still have a lot left. So the timing of the question caught me with some cash.


Maybe a poll would be in order? Maybe in terms of long-term allocation instead of current holdings? We might find a popular or median allocation. Retirement status probably makes a gigantic difference as well.

 

[GregLee]

Maybe a poll would be in order?

Something like this?

1. still working and prefer to keep lots of cash
2. still working and prefer to keep a minimum of cash
3. retired and prefer to keep lots of cash
4. retired and prefer to keep a minimum of cash

 

[sheehs1]

I have too much cash, 26% but I thought we were buying a 2nd home this past summer, hence the cash.
Have 49% in CD's yielding from 4.3% to 5.5%.
Have 25% between equities and bond funds.

Will be deploying some of that cash to equities and bonds soon. Should have done it a month ago. Will wait for the next debt crisis.

I prefer cash and/or cash equivalents like CD's for a ten year period of time while letting the equities and other investments function for the longer term horizons...

That said...it is likely I won't need to tap any of it but...as we all know....there are no guarantees.

I can always change my "philosophy". And probably will.

 

[Sea Kayaker]

I'm 39 with 4 years living expenses in cash. Smart? Probably not. Do I like to sleep well at night? You betcha.

 

[Bestwifeever]

I'm 39 with 4 years living expenses in cash. Smart? Probably not. Do I like to sleep well at night? You betcha.

I love learning what others do. One person would say, only four years?? and another will say, four months is too much for me. Our cash sleep meters are unique, like those sleep number beds.

 

[Moemg]

Our cash sleep meters are unique, like those sleep number beds.

Absolutely ! My sleep number is 2 1/2 years .

 

[FreeAtLast]

I am now at about 5%.