GoodbyeYellow
Recycles dryer sheets
- Joined
- Jun 23, 2021
- Messages
- 55
For reasons you can find, if interested, in another thread of mine, we are holding about 5 years of base* needs as cash. We also have a HELOC in place for unforeseen overages.
Holding $0.5M in cash to start with feels... sub-optimal. Not only is there inflation to worry about (but at least 1/3 of forecast is fixed expense), there is also the niggling thought that one should be putting the money to work in general, inflation or no.
BTW the rest of the portfolio (for the post-5 year period) is pretty much 100% equities. I know this is the subject of much debate, but not going there for now except to indicate a less-than-low interest in bonds and such. We are not tapping or even including SS in the above so that is a form of fixed-return investment I suppose.
What strategies might one employ to alleviate/improve this situation?
*base here means middle-ground; we may spend 15% less, or may spend 15% more in any given year.
Holding $0.5M in cash to start with feels... sub-optimal. Not only is there inflation to worry about (but at least 1/3 of forecast is fixed expense), there is also the niggling thought that one should be putting the money to work in general, inflation or no.
BTW the rest of the portfolio (for the post-5 year period) is pretty much 100% equities. I know this is the subject of much debate, but not going there for now except to indicate a less-than-low interest in bonds and such. We are not tapping or even including SS in the above so that is a form of fixed-return investment I suppose.
What strategies might one employ to alleviate/improve this situation?
*base here means middle-ground; we may spend 15% less, or may spend 15% more in any given year.