Poll:Got a lot of cash?

[devans0]

Around 1.5%.

Why have excess cash?

 

[hesperus]

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.

 

[Koogie]

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%

 

[scrabbler1]

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%.

 

[RobbieB]

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.

 

[Dog]

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).

 

[mickeyd]

+/- 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.

 

[Totoro]

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.

 

[I was misinformed]

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.

 

[Car-Guy]

"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.

 

[NW-Bound]

... 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...

 

[Earl E Retyre]

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).

 

[OnTheBeach]

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.

 

[audreyh1]

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.

 

[GrayHare]

Fortunately all my cash is safely in 1000 Rupee notes, so no worries.

 

[UpAnchor]

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.

Somewhat similar situation here. Retired Sept 30th and rolled over a substantial (for me) ESOP distribution, roughly half of which remains in cash in an IRA with the other half invested. I don't like having that much in cash but am struggling with how to invest it right now. So cash currently represents 23% of investible assets, 20% of total NW.

 

[Winemaker]

Fortunately all my cash is safely in 1000 Rupee notes, so no worries.

What no drachmas? Bolivars from Venezuela?

 

[bradaz2488]

Currently 30% cash. Was hoping for an election dip to put more money to work. Not in a hurry to put it back into the market at these levels. Goal is to be around 10% cash.

 

[Car-Guy]

Just finished calculating it (at this point in time) and it is ~41%, so my vote stays as no.

 

[JohnT]

My cash position is 3.3% of my investable assets, and 1.8% of my total assets. I am looking to increase my cash percentage by selling some investments, since the market is up. Ideally I could get to 5% in cash (of IA), but need to manage cap gains.

 

[GrayHare]

What no drachmas? Bolivars from Venezuela?

Well, given the news from India it was a comment that even cash can be at risk, whether held in a bank or in physical form.

 

[Earl E Retyre]

Well, given the news from India it was a comment that even cash can be at risk, whether held in a bank or in physical form.

Thanks for explaining the joke regarding rupees. I just googled
India: Anger rising over bungled rupee exchange - Nov. 14, 2016

What an incredible story and video. Summary is that India suddenly banned more than 80% of its rupee notes to fight against corruption and tax evasion. Majority of transactions are all cash. Causing major lines at relatively few ATM machines.

 

[Spanky]

we have 28% in cash.

 

[Shanky]

Other than market timers, who would ever hold anywhere near 50% in Cash?

 

[LOL!]

Other than market timers, who would ever hold anywhere near 50% in Cash?

Somebody with 6 months in cash in an emergency fund and just starting out with investing, so they have virtually no investments.