Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Should I Convert Part of My Portfolio to Cash
Old 04-22-2011, 09:03 AM   #1
Recycles dryer sheets
Join Date: Feb 2010
Posts: 408
Should I Convert Part of My Portfolio to Cash

If I would like to purchase a residence instead of renting, does it make sense for me to convert some of my portfolio to cash or some other liquid investment since the portfolio has grown a lot fairly recently? Would doing this be the equivalent of working on "paying off the mortgage" even before I have one?

Typically, I keep and 80 % stock and 20 % bond allocation and a portion of liquid assets to cover emergeny funds and a down payment on a residence. I am wondering if I should increase the amount of my liquid assets.

I am still in the accumulation phase and will be for at least another 5 to 10 years.

Thank you for your advice.

nico08 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 04-22-2011, 09:36 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Gone4Good's Avatar
Join Date: Sep 2005
Posts: 5,381

Opinions differ, but I would do what insurance companies do and match the maturity of my assets with that of my liabilities. If I know, or think, I'll have a large expenditure to make in the next couple of years (like buying a house) I'd want to have assets with maturities no longer than the date when I think those expenditures will arise. If I'm actively house shopping and could pull the trigger anywhere between now and several years from now, holding your down payment money in cash is entirely appropriate.
Retired early, traveling perpetually.
Gone4Good is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Immediate Annuity as part of your Retirement Portfolio freddyw FIRE and Money 35 03-01-2011 01:30 AM
To convert to Roth or not? sailfish FIRE and Money 36 03-20-2010 05:32 PM
Hey look at me! I'm part Neanderthal...but which part? mickeyd Other topics 10 12-18-2007 04:49 PM
Transitioning part of portfolio into fixed income? Synergy FIRE and Money 32 11-27-2007 03:36 AM
My First Convert 2B FIRE and Money 16 04-15-2007 12:47 PM


All times are GMT -6. The time now is 11:42 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2018, vBulletin Solutions, Inc.