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View Poll Results: Is Cash (MM, CD, Checking & Saving 50% or more of net worth?
Yes. 25 9.77%
No. 231 90.23%
Voters: 256. You may not vote on this poll

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Old 11-24-2016, 07:43 AM   #21
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It's just a number.
In our household cash has been trending up. Currently at 8.7%.
It's about 18 months of living expenses. But we could squeeze that and get 24 months...
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Old 11-24-2016, 07:53 AM   #22
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50% is a LOT of cash. I don't make the cut.
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Old 11-24-2016, 08:27 AM   #23
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We keep about 2 yrs of expected retirement expenses in cash. Right now we have some $$ in flux as we move accounts. Total in cash is about 5%
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Old 11-24-2016, 08:51 AM   #24
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A large chunk of my Bond Allocation is currently in Cash. I moved a bunch out of FSITX a few months before the Election, and I'm glad I did after seeing how the remainder in Fido's Total Bond Fund has performed.

But once you add in the Value of our House (which is paid for), the Cash portion is nowhere near the 50% mark. When you add up the Local Savings Acct, the MM Acct at Fido, a solid CD Ladder and actual US Mint Engravings of Jackson and Franklin......I'd say it's about 20% of true Net Worth.

But I'm re-balancing into FSTVX in my IRA.
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Old 11-24-2016, 08:52 AM   #25
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3 years of net living expense. But not by design. A little higher now because of profit-taking and clearing out losers.
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Old 11-24-2016, 09:05 AM   #26
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Around 1.5%.

Why have excess cash?
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Old 11-24-2016, 09:18 AM   #27
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13%
It doesn't sound like too much, but it accounts for approx 8 years of living expenses. But the primary reason for holding such an amount is we're looking at purchasing an additional (vacation) property in the coming year. Would like to bring our real estate assets up to about 25% of net worth. Rebalancing investment gains into tangible assets, if you will.
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Old 11-24-2016, 09:41 AM   #28
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Cash has edged up recently to 9% Due to portfolio cleanup, accumulating interest and dividends and still accruing w*rk income. I am slowly putting it into the market but hard at the current valuations.

Now, if you include our CD ladders (GICs) I am over 50% as that is our primary allocation to fixed income. That currently yields about 2.85%
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Old 11-24-2016, 09:42 AM   #29
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If you are talking about readily available cash in a bank account or equivalent, then for me it is a little under 0.5%. If you include the cash portion of mutual fund holdings, then it would rise to around 2%.
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Old 11-24-2016, 10:07 AM   #30
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Yeah I guess the proper definition of cash would be "not subject to market fluctuations".

Whatever happens your principal stays the same. So it's like stopping gambling, taking your chips off the table.

Yeah I know that with these kind of investments you have an inflation gamble that is real too, so maybe you can't ever be "truly safe"

That's why these polls are hard yes? Someone always has a problem with some definition.
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Old 11-24-2016, 11:00 AM   #31
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Currently about 17% of portfolio value in cash (CD ladder, savings account and emergency cash stashed around the house). We sold our primary house and dumped the $ from sale into savings account until DH decides what type of boat he wants as a retirement toy (he retired this year).
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Old 11-24-2016, 11:04 AM   #32
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+/- 10% now but we are stashing cash in expectation of a big spend in a year or two. 5% is more of a usual cash-stash for us.
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Old 11-24-2016, 11:25 AM   #33
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Roughly 40%. Should eventually go to about 20%, not in a rush.

For those who say why: because I don't want to risk getting stuck in a liquidity trap.
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Old 11-24-2016, 01:13 PM   #34
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Quote:
Originally Posted by RobbieB View Post
Yeah I guess the proper definition of cash would be "not subject to market fluctuations".

Whatever happens your principal stays the same. So it's like stopping gambling, taking your chips off the table.

Yeah I know that with these kind of investments you have an inflation gamble that is real too, so maybe you can't ever be "truly safe"

That's why these polls are hard yes? Someone always has a problem with some definition.
I suppose the two elements that are relevant for investments one might regard as "cash" are liquidity and immunity from market fluctuations. For me cash, as in money in a chequing account that could be spent immediately, represents less than 0.5% of NW. Considering "cash" to be all investments immune from market fluctuations that could be converted to bank deposits within a few days, then I have a substantial fraction of NW in cash - principally in 401K stable value funds and I-bonds.
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Old 11-24-2016, 07:21 PM   #35
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"if you won the game why keep your chips on the table"

I dunno. I still like stocks and bonds, but I like to feel safe also.
In thinking more about this, I think size matters . Of course, mileage (and opinions) will vary, but "for me", if I had <1m of investable NW I might not feel like I had won the game and could not safely take 50% of my chips off the table and turn it into cash (by this threads definition). However if I had >5m I might feel very comfortable with ~50% in cash. YMMV depending on lots of factors. e.g. Age, spend rates, plans for your heirs, etc.
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Old 11-24-2016, 07:29 PM   #36
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... Considering "cash" to be all investments immune from market fluctuations that could be converted to bank deposits within a few days, then I have a substantial fraction of NW in cash - principally in 401K stable value funds and I-bonds.
This is what I also consider cash. Cash does not have to be MM or CD or bank deposits. If interest goes up, it does not go down, then it is cash. Stable value funds and I-bonds certainly qualify.

If it looks like a duck, swims like a duck, and quacks like a duck...
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Old 11-24-2016, 08:21 PM   #37
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In thinking more about this, I think size matters . Of course, mileage (and opinions) will vary, but "for me", if I had <1m of investable NW I might not feel like I had won the game and could not safely take 50% of my chips off the table and turn it into cash (by this threads definition). However if I had >5m I might feel very comfortable with ~50% in cash. YMMV depending on lots of factors. e.g. Age, spend rates, plans for your heirs, etc.
I agree with this point. I would, however, think that many will have "won the game" with a lot less than $5M. As you say, depending on expenses and if you have other sources of income (e.g., SS, pension).
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Old 11-24-2016, 08:34 PM   #38
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currently at 13% - retired in April of 2016 (at 46) and cashed out my partnership, hence the large cash balance. slowing deploying cash in this environment. Goal is 5% cash balance to cover 2 years worth of expenses.
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Old 11-24-2016, 09:35 PM   #39
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Yes, I think investment allocation is definitely influenced by the size of the pot, yet personality/psychology has much to do with it too. Some folks who end up having more than they need will become more conservative in their investments, others will feel that having more means they can take greater risk with their investments.
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Old 11-24-2016, 09:55 PM   #40
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Fortunately all my cash is safely in 1000 Rupee notes, so no worries.
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