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Old 10-31-2011, 12:27 AM   #61
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That giant sucking sound is coming from our ER portfolio as our familyroom renovation vacuums up a couple percent... we'll probably finish the year around 5-6% and build it back up to 8-9%.
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Old 10-31-2011, 08:53 AM   #62
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Originally Posted by Sparkie67 View Post
100% currently, earning > 6% fixed, government guaranteed (in Australia).
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Indeed it does! What pays 6%, short term government bonds? Must one be an Australian citizen to buy them?
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Sounds good. In the past 5 years the AUD has appreciated nearly 40% vs. the USD.
What's your inflation rate?
Not too sure re inflation. The 'official' figure is around 3% but utilities are going up a lot etc - it feels higher than that! The cash is just in fixed term bank account, but I can get 0.5% higher in an at call variable account. Not a good plan long term but I sleep better knowing where I stand
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Old 10-31-2011, 09:24 AM   #63
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Well, under the OP definition... I am at 0.4%, and that is after being paid....


Now, if you include bond funds... a little bit more... maybe 5%.....

No CDs at all.. until I retire, I don't see a need for them...
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Old 10-31-2011, 09:33 AM   #64
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Since we have seen improvment in the market recently, I'm curious as to the percentage of cash being held by our esteemed group (especially for those already retired). Do count - savings, checking, money market, brokerage cash and under the mattress. Do not count cash being held in inside stock and bond mutual funds.

Right now I'm close to 10% - which is much higher than I need for living exepenses for the next 3-4 years, but I'm just not into buying more bonds now. Others?
We are about 63% cash.
Not retired but hopefully soon...
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Old 10-31-2011, 11:10 AM   #65
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I'm the OP. Thanks for all of the responses. I didn't think I'd see a range of cash allocation responses from "all to nothing". I guess it just shows how different people's situations are, and their level of comfortable risk. I also learned how difficult it is to define "cash".

No right or wrong answers. I see how difficult it would be to be a financial planner. Or then again, how easy - since no AA is effectively right or wrong!

Yeah. When I realized early on how much difference there was in recomended investment portfolios, that made it easy to do it myself. Why pay someone to to tell you which one is best, when no one can know for sure? Certainly you can get some good ideas for your specific case, but otherwise the science is pretty weak. Is there really a quantitative optimization, valid for the next 30 years, that shows 0%, 15%, 50%, or 60% foreign stocks is going to be better than an all domestic portfolio?

I have a portfolio I like. I have specific targets that are mostly for rebalancing rather than precise gain or risk optimization. It'll work just fine.
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Old 10-31-2011, 11:19 AM   #66
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I'm never quite sure how to take this kind of statement. I think you're implying that you have lots of cash. That is, 4 years living expenses = lotsa cash.

But for many folks, 4 yrs of living expenses wouldn't be a lot of cash. In retirement, for example, I'm finding that pensions and SS make up about half of my spending money. Interest and Dividends (forecast very conservatively) make up another 25% or so. So the cash to make up 4 years of living expenses isn't all that much. And because we're talking 4 years, most of that is in CD's that would mature over the 4 years.
I have assumed when someone states the cash they have in terms of "X amount of years of living expenses" to mean how long they could last spending just the cash they have on hand.
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Old 10-31-2011, 11:27 AM   #67
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I think it would mean cash to supplement pensions, annuities, social security and the like.
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Old 10-31-2011, 11:42 AM   #68
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In the retirement bucket- approx 20% Cash, 9% bonds and 71% in equities. Cash heavy due to Long Bonds being at historical high levels and equities priced below 2007 levels. As interest rates move back up will shift some cash into bonds. Will also move some equities that direction as well once equities move further ahead. Looking for 40/60 as long term FIRED target allocation Some would call this market timing however I see as buy low sell high asset allocation strategy. I do not know when interest rates will rise and bonds prices will fall but fairly certain it will happen as we are at historic high bond prices. One FP told me for every 1% move in interst rates equates to 7% move in long bond prices. We are now almost zero on rate cannot go much lower. Not yet FIRED and adding to cash, equities and bonds every payday for DCA.
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Old 10-31-2011, 11:43 AM   #69
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I think it would mean cash to supplement pensions, annuities, social security and the like.
That's what I take it to mean when I say we have more than 10 years of expenses in cash--it's the expenses left after the pension and other income are applied to it.

I would also consider CDs as part of a cash basket.
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Old 10-31-2011, 02:51 PM   #70
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I have assumed when someone states the cash they have in terms of "X amount of years of living expenses" to mean how long they could last spending just the cash they have on hand.
Quote:
I think it would mean cash to supplement pensions, annuities, social security and the like.
Now this is very interesting to me. Completely opposite viewpoints, and both make perfect sense in their own context.
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Old 10-31-2011, 04:37 PM   #71
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I only keep cash for the next one month of bills.
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Old 10-31-2011, 04:47 PM   #72
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I have assumed when someone states the cash they have in terms of "X amount of years of living expenses" to mean how long they could last spending just the cash they have on hand.
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I think it would mean cash to supplement pensions, annuities, social security and the like.
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That's what I take it to mean when I say we have more than 10 years of expenses in cash--it's the expenses left after the pension and other income are applied to it.

I would also consider CDs as part of a cash basket.
This applies to me. If I lost all my pensions I'd only have 18 months of expenses in cash.

If the stock market crashes I have 5 years where I don't need to draw dividends (let them reinvest), or have to sell fund shares.
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Old 10-31-2011, 05:42 PM   #73
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If we lost both of our pensions, both of our FICA benefit 'entitlements', and all of our interest and dividend income; we currently have enough cash to cover current expenses in, 2011 dollars, for 20 years.
Given the realities / prospects (of / for inflation) and the likelihood of increasingly confiscatory tax policies, the whole ball of wax is unlikely to cover annual expenses beyond 2050. By 2050, I have good reason to expect me and my misses will be dust.
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Old 10-31-2011, 08:54 PM   #74
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15%. We have two starting college next year.
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Old 11-01-2011, 07:23 AM   #75
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As of Thursday (10/30) closing, I'm 10% equities; no bonds; 90% cash. Used to be 20% equities, 80% cash. May get back in today; some of it anyway.

Just ER'd at 40 & 46; got to make it last...
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Old 11-01-2011, 07:26 AM   #76
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As of Thursday (10/30) closing, I'm 10% equities; no bonds; 90% cash. Used to be 20% equities, 80% cash. May get back in today; some of it anyway.

Just ER'd at 40 & 46; got to make it last...
Thursday 30 October of what year?
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Old 11-01-2011, 07:39 AM   #77
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Thursday 30 October of what year?
Ooops! I'm losing track not needing to keep up with time. Meant to say the 27th.
We've also bought a 6 month supply of Mexican Pesos as the dollar has appreciated like crazy down here over the past few months. Hasn't done this but once in a long time...2008
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Old 11-01-2011, 11:49 AM   #78
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Thursday 30 October of what year?
Could have been 1662.
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Thursday 30 October 1662 (Pepys' Diary)
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Old 11-01-2011, 01:54 PM   #79
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Recently sold some stock, so too much cash now at 23%, or about 16 years (yeah, years) of living expenses. Not real excited about my 1% return, but don't want to do anything big and stupid with the cash right now either.

Semi-retired at 46 with my little used car lot.

If my little used car lot goes under I have about 10 years in expenses in cash. If my rent houses burn down and the car lot goes under I have about 7 years in cash.
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ER'ed from the new car business Feb 2008. I'm 47, she's 45. Two boys ages 15 and 13. DW is SAHM. I've got a part-time used car lot I w*ork at 3 hours a day that keeps me in beer money.....
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Old 11-01-2011, 05:23 PM   #80
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I have about 15% in cash, which to me means assets whose value does not fluctuate day to day.
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