Poll:Got a lot of cash?

[RobbieB]

More than 50%?

 

[Another Reader]

Most of it is tied up in real estate. Rentals elsewhere plus a couple of properties in Silly Valley.

ETA: With two pensions, inherited IRA's with RMD's and now Social Security, cash is for maintaining the rentals and any buying opportunities that arise.

 

[Car-Guy]

I have a lot in cash (relatively speaking I guess) but not 50% of net worth so I'll vote no. (and I'm not complaining about the way the poll was worded)

 

[NW-Bound]

I think "a lot of cash" does not mean >50% to most people. Most think 20 to 30% is a lot.

So, no wonder that the poll result is so lopsided.

 

[RobbieB]

Well there is one of us. Five percent so far.

I could do a 10 column slider from 5 to 50%. How about that?

 

[Car-Guy]

Well there is one of us. Five percent so far.

I could do a 10 column slider from 5 to 50%. How about that?

Might work. Starting at <5% and work up to >50%.

 

[unclemick]

No. Under 4%. Most of my saving/investing years 60/40 and stay the course ala Mr Bogle. Most of my ER years also 60/40 and stay the course. Now in my 70's more like 50/50 and sllding with full auto Target Retirement.

heh heh heh - hindsight (since 1966) says my most brilliant moves were when I didn't notice, did nothing, and let those trusty computers do my re-balancing for me. Cash was bad news for my psyche cause my mind always found something I 'had' to spend it on.

 

[GalaxyBoy]

50% of net worth in the mattress? No.

 

[RobbieB]

OK. I'll do it and I promise to not screw it up this time -

"A lot of cash" got me to thinking especially given the other thread. I think I have a lot of cash at 10%, which is the value of my house in comparison, but for all you "if you won the game why keep your chips on the table" guys, maybe not so much.

I dunno. I still like stocks and bonds, but I like to feel safe also.

OK. I'll work up the slider.

 

[powerplay]

I do have a lot of cash, but nowhere near 50%.

 

[hpnutty]

In absolute terms I think I'm holding lots of cash. Since mid-2012 it has grown from 8.8% to 10.2% of our portfolio. In that time we cash flowed two college educations and are saving to pay cash for the next house. So in relative terms we probably are not holding a lot of cash.

 

[RobbieB]

Ok, now the "lotta cash" people have quadrupled.

I'mma gonna let this one coast for a while.

Might need a longer scale...

 

[youbet]

Including CD's as "cash" is pushing the definition of cash a bit IMO. I know in these days of low CD interest rates, short maturity CD's seem like a savings account. But there are still folks with large percentages of their portfolios in CD ladders meant to be an investment, not a source of liquidity or short term spending money.

Having said that.......... exclusive of MM funds that come and go as I trade in my portfolio, I keep under 1% of my net worth as true "cash."

 

[RobbieB]

For the purpose of this (and the next) poll of mine, consider "cash" as any FDIC insured deposit. Yeah, if you have a lot of cash you probably have a few banks too.

 

[Danmar]

Not even close. Well under 5%. Just to smooth out div receipts and large purchases. Maybe better question, at least for retirees, is how many years (months) of expenses do you have in cash. The need for cash depends on your sources of regular cash flow, like pensions or divs and whether you have lumpy expenses. Some people might have a significant part of their FI allocation in "cash" (eg CD's) but I do not have any FI (pension is my FI proxy). Others might have large cash balances they expect to redeploy into long term investments at some point. Given today's low interest rates there is a powerful incentive not to have cash? For those who have very high cash balances, why?

Edit. I see there is another recent thread discussing these issues.

 

[Another Reader]

For the purpose of this (and the next) poll of mine, consider "cash" as any FDIC insured deposit. Yeah, if you have a lot of cash you probably have a few banks too.

I can't agree with this definition. I forgot that there were three or four years of withdrawals in "cash" (treasuries-only MM) in the inherited IRA's. No FDIC insurance there.

 

[DrRoy]

I only have a couple %. Cash pays nothing so I hold little.

 

[Senator]

I have a few stacks of green cash. Typically, I deal with $10K-$15K a month in cash. So I keep a bit on the side... I have enough to live on, in a minimal lifestyle, for about a year if banks were closed for an extended time.

In reality though, my main accounts with what would be considered a cash investment, would be about 5% of investment accounts. Only about 2% of net worth.

 

[Fermion]

If you said cash or bonds, you might get the 50% and it would essentially mean the same thing.

I have cash earning 1.1% in a online saving account while bond holders barely earn 2 to 3%.

 

[LuckyDog]

Less than 10%...does not include a large CD paying 3.5%.

 

[target2019]

It's just a number.
In our household cash has been trending up. Currently at 8.7%.
It's about 18 months of living expenses. But we could squeeze that and get 24 months...

 

[DEC-1982]

50% is a LOT of cash. I don't make the cut.

 

[Choices]

We keep about 2 yrs of expected retirement expenses in cash. Right now we have some $$ in flux as we move accounts. Total in cash is about 5%

 

[FiveDriver]

A large chunk of my Bond Allocation is currently in Cash. I moved a bunch out of FSITX a few months before the Election, and I'm glad I did after seeing how the remainder in Fido's Total Bond Fund has performed.

But once you add in the Value of our House (which is paid for), the Cash portion is nowhere near the 50% mark. When you add up the Local Savings Acct, the MM Acct at Fido, a solid CD Ladder and actual US Mint Engravings of Jackson and Franklin......I'd say it's about 20% of true Net Worth.

But I'm re-balancing into FSTVX in my IRA.

 

[kcowan]

3 years of net living expense. But not by design. A little higher now because of profit-taking and clearing out losers.