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Old 02-02-2016, 09:13 PM   #61
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3%, might be time to put this money to work, too much cash for my taste.
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Old 02-02-2016, 09:30 PM   #62
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Quicken says 32.2% in cash now, and that includes I-bond.

However, Quicken does not know that all of my put options are now "in the money", and if the market does not come up soon they will get exercised. After I am forced to buy these stocks, I will be down to 27.5% cash in April.
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Old 02-02-2016, 09:42 PM   #63
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4% but that is needed to float rental mortgages, pay bills, etc...so seems like 0%.
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Old 02-02-2016, 10:30 PM   #64
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27%, but only because I moved a good bit of my bond allocation into the stable value fund. So maintaining the asset allocation now requires me to lump bonds and cash together.
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Old 02-02-2016, 11:10 PM   #65
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Let's see, how much in checking and savings? Less than 1%. Fully invested in the brokerage accounts in non-cash investments.
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Old 02-03-2016, 01:02 PM   #66
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This thread is interesting

Cash clearly is not interpreted/ defined uniformly.

Are bonds same as cash ?

Is cash just what's on hand now or what will be earned by way of future interest and dividend income ?

How much cash "on hand" is also entirely dependent on when the snapshot is taken. Some make withdraws annually. Others monthly. Some only await a dividend check. Others sell stocks. Others wait for bond coupons or a portion of their ladder to mature.

We have lots of answers to the question but zero consistency. Makes it a fairly useless comparison and discussion.

A better question: The simple "what is your AA" between equities-bond-cash is probably a more insightful comparison.

Or

Cash+bonds+projected interest+projected annual dividend income + projected pension income + SS income = how many years of living expenses.

Or the one I like best :

If you could not sell any equities or hard assets other than bonds for the next X years ( like a long bear market where u didn't want to sell). how long would all those sources of funds and income on those funds last you in current or moderately belt-tightened lifestyle ( in terms of X years)

That last one assumes some money flows in from sources as well as flows out for expenses. This scenario is most realistic I think.
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Old 02-03-2016, 01:11 PM   #67
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"What is cash?" is a frequently discussed topic...

http://www.early-retirement.org/foru...nds-70279.html

http://www.early-retirement.org/foru...ml#post1431615
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Old 02-03-2016, 01:27 PM   #68
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Quote:
Originally Posted by papadad111 View Post
....
Or the one I like best :

If you could not sell any equities or hard assets other than bonds for the next X years ( like a long bear market where u didn't want to sell). how long would all those sources of funds and income on those funds last you in current or moderately belt-tightened lifestyle ( in terms of X years)

That last one assumes some money flows in from sources as well as flows out for expenses. This scenario is most realistic I think.
First for us there is SS cash flow. Then since the AA is 55/45, we could dip into that 45%. Since about 7% is high rate ibonds, that means dipping into 38% fixed income. Of that 38%:

1% in true cash
4% in short term bonds (refreshed yearly from intermediate bonds, note **)
33% in intermediate bond funds (like VFIDX and BND)


** This is something I'm just setting up after seeing how some posters on the forum build a yearly "cash" reserve. It could be short term bonds, CD's, or money market. Depends on the rate structure. I'm willing to take a small risk here as some year's this will take a small hit but overall should give out a little more "cash". If we don't spend this in the year, it will roll over and accumulate per the VPW tool method. This is also consistent with my rebalance method which is to not buy stocks in a severe downturn and spend from FI.
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Old 02-03-2016, 01:58 PM   #69
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I keep 5% cash.

Savings account is my loss leader.
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Old 02-03-2016, 02:03 PM   #70
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Weil then I have more cash. But I can't just go out and spend these Ibonds. Takes some time to liquidate and I'm locked in by the high rates they pay (old Ibonds). So I'll have to disagree on assigning them to cash.
It only takes 1 or 2 business days to cash in a bond or part of a bond, if I put in the request in the morning it is usually in my bank by the end of the following day. Unless of course you mean that you have to hold an I-Bond for 12 months before you can cash it in.

I agree that the older bonds have higher rates but they can still be cashed in immediately if needed in an emergency.
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Old 02-03-2016, 02:44 PM   #71
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50% true cash in TIRA.
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Old 02-03-2016, 02:51 PM   #72
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I have about 51% bonds at the moment. This does not count as cash. The 3% cash I referred to earlier was in Fidelity's cash money market like things. I would much prefer to earn at least a nominal 2-3% instead of nothing, so have as little "cash" as possible.

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Old 02-03-2016, 03:36 PM   #73
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10% cash, 3 yrs expenses. This is my first year, second month in retirement. Being cautious about expenses. So cash could last longer.
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Old 02-04-2016, 12:15 AM   #74
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About 1% in cash here. Plus about 4% in short term muni MF's which have been very stable the past couple of years.

Like some of the other posters, I don't believe in keeping much cash on hand unless it's part of a investment strategy at the time. If/when it becomes time to increase my allocation in equities, I'll do that by selling bond MF's.
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Old 02-04-2016, 11:00 PM   #75
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100% Cash as of mid Jan 2016. Haven't been in this full cash position since just before the 2008 crash. I admit that I'm a market timer but only over very long time horizon (many years). I am expecting greater than 30%-50% correction in equities from the peak, then jump back in.

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Old 02-05-2016, 09:59 AM   #76
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3% cash, but DW and I are still working, so more cash arrives each day. We don't need a cash bucket for expenses.

I was surprised at some of the high cash positions mentioned here.
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Old 02-05-2016, 10:50 AM   #77
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I am 56 still working in my own business but hoping to retire this year if I can accomplish a transition. Have been FI for 15 years. My focus now is more towards tax savings and security rather than appreciation but my current allocation is:

Cash (CDs and Money Markets paying between 1-1.5% with 1-2 year maturities) - 25%

Individual Municipal Bonds (diversified in maturity, credit rating, and issuer) - 25%

Real Estate - 35%

Individual Stocks - 15%

I do not buy funds or use an advisor.
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Old 02-05-2016, 11:17 AM   #78
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100% Cash as of mid Jan 2016. Haven't been in this full cash position since just before the 2008 crash. I admit that I'm a market timer but only over very long time horizon (many years). I am expecting greater than 30%-50% correction in equities from the peak, then jump back in.

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I would be more than happy to see 1620-1650 on the S&P,but will ease in on any break below 1700.
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Old 02-05-2016, 11:46 AM   #79
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14% cash here - to cover expenses so portfolio isn't touched until 2019 at the earliest.
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Old 02-05-2016, 11:55 AM   #80
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Around 15% if you count CDs as cash. That's about 6 years living expenses.


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