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View Poll Results: How many years of living expenses do you keep in cash and near-cash?
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1 year's worth or less
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31 |
33.33% |
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2 years
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16 |
17.20% |
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3-5 years
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25 |
26.88% |
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6-8 years
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8 |
8.60% |
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9-11 years
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4 |
4.30% |
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12-14 years
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3 |
3.23% |
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15+
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6 |
6.45% |
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Re: How many years of expenses in cash
07-12-2006, 12:21 PM
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#21
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,021
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Re: How many years of expenses in cash
 Quote:
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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. 
__________________
Numbers is hard
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Re: How many years of expenses in cash
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07-12-2006, 12:34 PM
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#22
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Moderator Emeritus
Join Date: Jul 2005
Posts: 2,811
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Re: How many years of expenses in cash
Quote:
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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.
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Geee, I feel better already. :P
__________________
Work? I don't have time to work....I'm retired.
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Re: How many years of expenses in cash
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07-12-2006, 01:15 PM
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#23
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jan 2006
Posts: 5,350
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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
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07-12-2006, 01:19 PM
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#24
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Thinks s/he gets paid by the post
Join Date: Apr 2006
Posts: 1,490
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Re: How many years of expenses in cash
Quote:
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I think calling the hoped for total return of an equity portfolio an opportunity cost is not quite kosher.
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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
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07-12-2006, 01:24 PM
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#25
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Thinks s/he gets paid by the post
Join Date: Apr 2006
Posts: 1,490
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Re: How many years of expenses in cash
Quote:
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where do you keep it so it's insured?
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*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
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07-12-2006, 01:25 PM
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#26
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Moderator Emeritus
Join Date: Feb 2006
Location: San Francisco
Posts: 8,827
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Re: How many years of expenses in cash
Quote:
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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?
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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.
__________________
Rich
San Francisco Area
ESR'd March 2010. FIRE'd January 2011.
As if you didn't know..If the above message contains medical content, it's NOT intended as advice, and may not be accurate, applicable or sufficient. Don't rely on it for any purpose. Consult your own doctor for all medical advice.
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Re: How many years of expenses in cash
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07-12-2006, 01:46 PM
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#27
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Recycles dryer sheets
Join Date: May 2006
Posts: 465
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Re: How many years of expenses in cash
Quote:
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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?
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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
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07-12-2006, 01:52 PM
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#28
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Thinks s/he gets paid by the post
Join Date: Apr 2006
Posts: 1,490
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Re: How many years of expenses in cash
Quote:
now that could create some new and uninsurable risks!
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