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How many months of cash in your portfolio do you keep?
Old 09-17-2017, 10:17 AM   #1
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How many months of cash in your portfolio do you keep?

When you are retired. Thanks in advance.
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Old 09-17-2017, 10:25 AM   #2
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When I was working/accumulating never more than 3-6 months.

Now I'm in "drawdown" (although the rising market has kept drawdown from happening), and after 8 years of up market, I've got about 100 (counting <5 yr CD maturity as cash).
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Old 09-17-2017, 10:27 AM   #3
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I'm not retired yet and am not using a portfolio for income, but usually keep a running balance of about 6 months cash in bank accounts. However at this moment I'm sitting on about 30.
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Old 09-17-2017, 10:32 AM   #4
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When I was working/accumulating never more than 3-6 months.

Now I'm in "drawdown" (although the rising market has kept drawdown from happening), and after 8 years of up market, I've got about 100 (counting <5 yr CD maturity as cash).
So a little over 8 years of cash.
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Old 09-17-2017, 10:36 AM   #5
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Zero, if I need cash right now I have to sell some gold or silver. I have around $75 that I can withdrawal from my checking account without bouncing anything
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Old 09-17-2017, 10:36 AM   #6
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Whatever is in my checking account. On average probably about 4 weeks of spending. Starts out the quarter high when I sweep my quarterly dividends to the bank. By the end of the quarter, I am sometimes down to selling off stocks or bonds to raise cash.
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Old 09-17-2017, 10:41 AM   #7
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Zero, if I need cash right now I have to sell some gold or silver. I have around $75 that I can withdrawal from my checking account without bouncing anything
How do you cut it so close?
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How many months of cash in your portfolio do you keep?
Old 09-17-2017, 10:41 AM   #8
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How many months of cash in your portfolio do you keep?

I am retired, and very cautious and conservative in financial matters because that is just how I am.

I keep 5.5% cash in a Vanguard money market account in my portfolio. If I assume that SS and pension will continue, and subtract that from my spending, then right now that 5.5% would cover 41 months.

(Bear in mind that we are enjoying a huge bull market at present, and if/when we have another severe recession, it would not cover nearly as many months.... for example, a recession as deep as what we saw on 3/9/2009 would mean it would cover 28 months, if I did not adjust my spending accordingly.)

Actually I have more than that, because this is not including my local bank account in the bricks-n-mortar bank down the street. I don't count my bank account as part of my portfolio. I withdrew my 2017 spending money back in January and that, plus a substantial buffer, is in the bank. If that is included too, then I have 60 months.

Most people do not need this much, IMO. I just like having a lot of cash around.
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Old 09-17-2017, 10:49 AM   #9
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I am retired, and very cautious and conservative in financial matters because that is just how I am.

I keep 5.5% cash in a Vanguard money market account in my portfolio. If I assume that SS and pension will continue, and subtract that from my spending, then right now that 5.5% would cover 41 months.

(Bear in mind that we are enjoying a huge bull market at present, and if/when we have another severe recession, it would not cover nearly as many months.)

Actually I have more than that, because this is not including my local bank account in the bricks-n-mortar bank down the street. I don't count my bank account as part of my portfolio. I withdrew my 2017 spending money back in January and that, plus a substantial buffer, is in the bank. If that is included too, then I have 60 months.

Most people do not need this much, IMO. I just like having a lot of cash around.
Do you put your dividends into cash?
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Old 09-17-2017, 10:51 AM   #10
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About 8 years or so in Cash.
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Old 09-17-2017, 10:53 AM   #11
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Not much. Typically, 1 or 2 months in bank checking & savings accounts. However, I can write checks on my Vanguard Short Term Investment Grade fund if necessary; that'd be years worth.
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Old 09-17-2017, 10:54 AM   #12
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I get a monthly dividend in cash from a big bond fund so I don't actually keep much in cash beyond that - maybe one month just as a buffer to avoid monthly checking account fees plus $500 more. I also get a quarterly dividend in cash from a stock fund to supplement the rest of the cash coming in.


I don't like keeping any big amounts in cash because it earns zilch and any earnings are fully taxable. I do keep a first-tier emergency fund in an intermediate-term muni bond fund.
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Old 09-17-2017, 10:57 AM   #13
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Do you put your dividends into cash?
Absolutely. Then I use the cash in rebalancing during the first week in January, after withdrawing that year's spending money. So, as of today I have 6.21% cash in Vanguard money market (and I guess that represents a few more months than I specified in my previous post). Next January after I withdraw my 2018 spending money and then rebalance, it will go back to 5.5%.
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Old 09-17-2017, 11:05 AM   #14
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How do you cut it so close?

I know what my monthly expense are and I keep just enough in checking to cover it. I usually don't run it that close but the last couple months have been challenging and I've had to sell some silver.
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Old 09-17-2017, 11:06 AM   #15
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So a little over 8 years of cash.
Hahahah, thats definitely a bucket full.!
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Old 09-17-2017, 11:08 AM   #16
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I know what my monthly expense are and I keep just enough in checking to cover it. I usually don't run it that close but the last couple months have been challenging and I've had to sell some silver.
I am guessing you spend the dividends as they come in.
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Old 09-17-2017, 11:08 AM   #17
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Zero, if I need cash right now I have to sell some gold or silver. I have around $75 that I can withdrawal from my checking account without bouncing anything
Hahahah, thats the direct opposite of the poster above,.
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Old 09-17-2017, 11:12 AM   #18
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I have a GIC ladder, but as interest rates have been ridiculously low for the last couple of years, I have not renewed the last couple of GICs as they matured. So currently I have about 2 years (24 months) expenses in cash.
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Old 09-17-2017, 11:15 AM   #19
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I see answers all over the place here. I guess it is best to keep as little cash as you safety can. Right now I have about 6 years if my dividends get cut in half in a bear market. I think that is a little bit to much. I might cut that in half.
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Old 09-17-2017, 11:17 AM   #20
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About 5 years worth.
I'd like to reduce it to 3-4 years worth, but am waiting for the next recession or collapse of market before doing that.
If it doesn't happen, I can always just feel super secure not worrying about it happening.
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