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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 11-25-2016, 12:21 AM   #41
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Originally Posted by OnTheBeach View Post
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.
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Old 11-25-2016, 08:12 AM   #42
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Fortunately all my cash is safely in 1000 Rupee notes, so no worries.
What no drachmas? Bolivars from Venezuela?
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Old 11-25-2016, 08:55 AM   #43
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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.
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Old 11-25-2016, 09:00 AM   #44
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Just finished calculating it (at this point in time) and it is ~41%, so my vote stays as no.
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Old 11-25-2016, 09:58 AM   #45
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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.
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Old 11-25-2016, 10:22 AM   #46
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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.
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Old 11-25-2016, 11:33 AM   #47
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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.
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Old 11-25-2016, 11:52 AM   #48
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we have 28% in cash.
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Old 11-25-2016, 12:03 PM   #49
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Other than market timers, who would ever hold anywhere near 50% in Cash?
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Old 11-25-2016, 12:10 PM   #50
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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.
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Old 11-25-2016, 12:16 PM   #51
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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...
A fully qualified duck for me should also be able to fly away. If I can't access it within a few months, its not cash. I do have a category "non-volatile" which includes cash.

CDs that can be opened up with a small penalty is cash to me. My inaccessible tax-exempt savings account isn't cash.
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Old 11-25-2016, 01:44 PM   #52
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A fully qualified duck for me should also be able to fly away. If I can't access it within a few months, its not cash. I do have a category "non-volatile" which includes cash.

CDs that can be opened up with a small penalty is cash to me. My inaccessible tax-exempt savings account isn't cash.
I can access anything and get it within a few days with a few mouse clicks. However, I would not want to touch some accounts, even the I-Bonds, unless I do not mind paying mucho deferred taxes.

Your post brought up a point. I look at low-yield investment instruments as cash to differentiate them from bonds, which will drop in value when interest rate rises. Some people apparently think of cash literally as something that they are ready to spend in a moment's notice.

Unless one is just starting out and does not have much, most retirees have enough money stashed away that even 20% cash means an amount in the several hundred $K, and I do not see that as loose change to be spent shortly. Heck, that would mean a 20% annual WR, and his stash would not last long at that rate.
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Old 11-25-2016, 02:02 PM   #53
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Besides my house, 100% of my investments are in cash at Vanguard Prime Money Market.
Why? I can't spend all of what I have so there is no reward to take any market risk with bonds or equities.
Boring but satisfied.
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Old 11-25-2016, 02:15 PM   #54
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Other than market timers, who would ever hold anywhere near 50% in Cash?
Maybe those who feel they have won the game and have taken their chips off the table. (Which is the same comment that really started this poll from the "How much cash to hold" thread in the "Stock Picking and Market Strategy" forum)

I know a number of them, myself included, just not many on this forum.
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Old 11-25-2016, 03:51 PM   #55
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Oh yeah, cash is cash!

Cash is not ibonds. What are ibonds anyway, an Apple product?

Cash is something you buy stuff with. If you can't buy stuff with what you have it ain't cash.
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Old 11-25-2016, 04:43 PM   #56
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Do you have to have it in hand for it to be called cash? Bundles of Benjamin?

I-bond is indeed not cash. It's superior to cash which loses to inflation. I-bond gives you some returns over and above inflation.

Just a couple of mouse clicks, and that I-bond is transferred to my checking account, ready to buy stuff. It's the same as transferring from MM, and a heck of a lot faster than redeeming CD.
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Old 11-28-2016, 10:30 AM   #57
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As little as possible
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Old 11-28-2016, 03:56 PM   #58
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Besides my house, 100% of my investments are in cash at Vanguard Prime Money Market.
Why? I can't spend all of what I have so there is no reward to take any market risk with bonds or equities.
Boring but satisfied.
I understand where you are coming from, why take any risk.

I also have a large percentage in cash, I like a large emergency fund and we have older cars that we expect to replace in the next few years.

So why Vanguard Prime Money Market instead of a savings account or a CD?
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Old 11-28-2016, 06:43 PM   #59
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I understand where you are coming from, why take any risk.

I also have a large percentage in cash, I like a large emergency fund and we have older cars that we expect to replace in the next few years.

So why Vanguard Prime Money Market instead of a savings account or a CD?
Hi Sue J,

I use the Vanguard Prime MM out of habit (I used to be a Flagship level, now Voyager Select), the convenience of having all my money in one place, reliable electronic bank transfers to my local bank checking account, RMD calculations and finally I may get so bored that I want to get back into the market in the future.

The interest rate may be higher elsewhere, at an increase in risk, but I don't want any risk now. Truly I can't spend all what I am supposed to spend now so earning more interest just makes the under-spending a larger number.
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Old 11-28-2016, 06:53 PM   #60
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It'd be impossible to gather the data but it might be interesting to see a scatter plot of cash as a percentage of total investments/net-worth on one axis, cash as a percentage of yearly spend on the other axis, and the dots being different sizes depending on if you are 0%, 25%, 50%, 75%, or 100% to FIRE.
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