Poll:Got a lot of cash?

[RobbieB]

Ten percent of us have a lot of cash.

[RetireAge50]

Yikes. Cash is certain to lose half its value over 25 years while stocks quadruple.

[Car-Guy]

Quote:

Originally Posted by RetireAge50 Yikes. Cash is certain to lose half its value over 25 years while stocks quadruple.

Past performance is no guarantee of future results.... Especially with stocks.

[RetireAge50]

Quote:

Originally Posted by Car-Guy Past performance is no guarantee of future results.... Especially with stocks.

Agreed. But I still think cash is more risky than stocks long term.

I have 6% cash now as we will be withdrawing 5% or more per year until SS and pensions kick in.

[Car-Guy]

Quote:

Originally Posted by RetireAge50 Yikes. Cash is certain to lose half its value over 25 years while stocks quadruple.

Quote:

Originally Posted by RetireAge50 Agreed. But I still think cash is more risky than stocks long term.

Okay, I'll check back in 25 years (I wish) and see if a million is only worth about 1/2 million in buying power compared to today and if the stock market is over 76000.

[Earl E Retyre]

Quote:

Originally Posted by RetireAge50 Yikes. Cash is certain to lose half its value over 25 years while stocks quadruple.

Quote:

Originally Posted by Car-Guy Okay, I'll check back in 25 years (I wish) and see if a million is only worth about 1/2 million in buying power compared to today and if the stock market is over 76000.

+1. No one can be "certain" as to what the future will hold. Inflation, stock market, or otherwise.

[Badger]

Quote:

Originally Posted by Tom57 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.

+1 Sounds familiar. I will soon be moving a few 100k tIRA mutual fund money to Vanguard MM to both have all my IRA investments with Vanguard to simplify RMD and to take advantage of the increases in that MF and have it available to reinvest in the future if interested. I am not concerned with inflation etc. since there is more than enough to last me until my expiration date is due and I would rather not have to make up a loss like the last time. As you age there is less time to make up.

Cheers!

[Another Reader]

I don't consider commercial paper money market funds all that safe. There's a reason the brokerage firms switched their settlement accounts to government money market finds.

I hold cash at Fidelity and Vanguard in the treasuries only MM accounts - FDLXX and VUSXX.

[audreyh1]

Quote:

Originally Posted by Another Reader I don't consider commercial paper money market funds all that safe. There's a reason the brokerage firms switched their settlement accounts to government money market finds. I hold cash at Fidelity and Vanguard in the treasuries only MM accounts - FDLXX and VUSXX.

Me neither. Most cash gets transferred to FDIC insured accounts. Otherwise govt MM.

[RobLJ]

I would be less concerned now--but was extremely worried about this in '06 (terrified, actually), so much that I switched allmost all cash in the 403b to Fidelity Intermediate Treasury--which turned out in retrospect to be one of the better change of allocations I've made. Shifting most of my large cap growth gains to small/mid value from 2000-2002 was the other, although part of that was rebalancing, part of that was changing the allocation to include more value, and part was terror at tech and S&P PEs.
The shift at both firms to government paper for MM is a good thing, even if it means no yield.
In early '06, we had some bonus money from DW that we were putting away for the yewts' college and the Schwab guy tried to get me to put it in their "yield plus" money market (I can't remember the fund name), which I refused and then read the prospectus to see all the bank paper in it, including several banks that went down in the Crash. In '08, it and its co-fund sank like a stone and Schwab was in litigation for many years, since they had sold it as a "safe" money market--Allegedly, to be sure, but based on my experience, I believe it. It turned out we didn't need it for the college--we paid as the yewts went, but it could have been devastating.
(Also, I think the switch to primarily govt paper was pretty much mandated in the post-crash Reforms/regulation--but maybe not.)
Cash is 12% of the investment portfolio, but more (16%) if you include savings. Too high, but I'm OK with that. I am putting a bit more in stocks/bonds incrementally when the market goes down 3%.

Quote:

Originally Posted by Another Reader I don't consider commercial paper money market funds all that safe. There's a reason the brokerage firms switched their settlement accounts to government money market finds. I hold cash at Fidelity and Vanguard in the treasuries only MM accounts - FDLXX and VUSXX.

[audreyh1]

I had moved away from money market funds years ago (once the temporary Govt guarantee expired) due to liquidity concerns and knowing the SEC would mandate changes eventually. But a major impetus was I could earn ~1% in an FDIC protected savings account, and yields had dropped well below 0.1% in the comparatively riskier MM funds. It only takes a day to transfer funds, so the convenience factor was minor.

Not so easy to manage in an IRA although some offer bank-sweep funds.

[Drake3287]

Full CalPERS retirement that I easily live off but I also have about $500,000. in investments and another $250,000. in cash. I fully realize I have way to much cash on hand.

[street]

No>>> We have about 18% in MM,CD and saving plans which make minimum return. My plan was to always have enough money that was liquid and that taxes were paid on to live on when I retired. This 18% of cash we will be able to live my life time on and the rest 82% is invested in stocks/bonds. My plan was to live of off investment returns and never have to touch principal.

[datuck]

We have 5% in cash, 24% in other taxable investments, 45% in IRAs and 26% in real estate investments. DW stills works (self employed as RE agent) and I consult a few hours per week just to use my brain and pay for golf related expenses [emoji16]. A bit concerned about where markets are heading overall but having made it through other ups/downs/ups, I can deal with it...

[cbo111]

We have almost 20% in cash (cds, ibonds, MM). While hard to quantify, but I got a bad feeling about turbulence in 2017. I had the same feeling prior to the 08 correction and housing market crash. Back then, I watched my net worth drop by 30%. This time I will keep some powder dry for when the correction happens. Market timing....maybe



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