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View Poll Results: How many years of living expenses do you keep in cash and near-cash?
1 year's worth or less 31 33.33%
2 years 16 17.20%
3-5 years 25 26.88%
6-8 years 8 8.60%
9-11 years 4 4.30%
12-14 years 3 3.23%
15+ 6 6.45%
Voters: 93. You may not vote on this poll

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Re: How many years of expenses in cash
Old 07-12-2006, 01:21 PM   #21
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Re: How many years of expenses in cash

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Originally Posted by SteveR
On market days like this one (down >100 pts. so far) I do think about having a lot more in cash.
Look at it in a more positive light, Doc. On days like today you do have more in cash...at least as a percentage of your portfolio.

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Re: How many years of expenses in cash
Old 07-12-2006, 01:34 PM   #22
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Re: How many years of expenses in cash

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Originally Posted by REWahoo!
Look at it in a more positive light, Doc.* On days like today you do have more in cash...at least as a percentage of your portfolio.

Geee, I feel better already. :P
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Re: How many years of expenses in cash
Old 07-12-2006, 02:15 PM   #23
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Re: How many years of expenses in cash

I'm only in my 20's and have never had more than one years worth in cash. My bank says i'm insured for up to 100k. For those of you with much more than 100k, where do you keep it so it's insured?
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Re: How many years of expenses in cash
Old 07-12-2006, 02:19 PM   #24
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Re: How many years of expenses in cash

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I think calling the hoped for total return of an equity portfolio an opportunity cost is not quite kosher.
it's kosher, but one should realize that a propsective opportunity cost could be either positive or negative.
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Re: How many years of expenses in cash
Old 07-12-2006, 02:24 PM   #25
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Re: How many years of expenses in cash

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where do you keep it so it's insured?
*there are various ways of increasing the total amount insured (different titles, different banks, credit unions etc) but why must it be insured? treasuries are virtually "insured" and money market accounts are damn close to it ...
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Re: How many years of expenses in cash
Old 07-12-2006, 02:25 PM   #26
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Re: How many years of expenses in cash

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Originally Posted by aaronc879
I'm only in my 20's and have never had more than one years worth in cash. My bank says i'm insured for up to 100k. For those of you with much more than 100k, where do you keep it so it's insured?
If keeping it insured is important to you, your choices include savings accounts spread over several banks, CDs spread over several banks, and in effect, short-term treasuries.

I suspect many just keep it in a MMF; the risk of loss in value is not zero but pretty close. I am not aware of any MMF that failed in modern history, though there may have been a last-minute bail-out here and there by the owning company.
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Re: How many years of expenses in cash
Old 07-12-2006, 02:46 PM   #27
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Re: How many years of expenses in cash

Quote:
Originally Posted by aaronc879
I'm only in my 20's and have never had more than one years worth in cash. My bank says i'm insured for up to 100k. For those of you with much more than 100k, where do you keep it so it's insured?
You could get married. With jointly owned accounts, each owner is insured up to $100K. You can then also open separate individual accounts in yours and your wife's name and get another $100K insured each, for a possible total of $400K insured.
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Re: How many years of expenses in cash
Old 07-12-2006, 02:52 PM   #28
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Re: How many years of expenses in cash

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You could get married.
now that could create some new and uninsurable risks!
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