Cash in FIREcalc

[slowsaver]

I don't seem to see an option under the "Your Portfolio" to say what percentage of your portfolio is cash/CDs/MM. (Maybe I'm not looking carefully enough?)

Anyway, if cash isn't an option in FIREcalc, then do you include cash in your starting portfolio value, or leave it out?

 

[razztazz]

If I am not mistaken the fixed income options "Commercial Paper" and "Long Interest Rate" are for all intents and porpoises what constitute a money market fund i.e. cash

 

[slowsaver]

So bonds and cash are both lumped into the same "fixed income" bucket then? Kind of implies not much performance difference between the two.

 

[Dtail]

So bonds and cash are both lumped into the same "fixed income" bucket then? Kind of implies not much performance difference between the two.

3 month commercial paper currently is around 0.17%, so using this option could be a fair choice for cash.
Long term averages for CP is higher, but so is long term averages for bonds.

 

[slowsaver]

So, in a hypothetical portfolio of 33% total market stock fund, 33% bond funds, 34% cash ... would you choose "commercial paper" and "equities" = 33% ?

My guess is that it would categorize 67% (33+34) as "commercial paper"

 

[razztazz]

So bonds and cash are both lumped into the same "fixed income" bucket then? Kind of implies not much performance difference between the two.

There are options there for 5 year treasuries and 30 year treasuries. Those are your bond options. Quite different from the commercial paper & long interest rate options that act as "cash." Unless I've been missing something all these years?

 

[pb4uski]

So, in a hypothetical portfolio of 33% total market stock fund, 33% bond funds, 34% cash ... would you choose "commercial paper" and "equities" = 33% ?

My guess is that it would categorize 67% (33+34) as "commercial paper"

I would think that a mixed portolio of 34% 1-month Treasury, 33% LT Corporate Bond (or LT Treasury or a combination of both) and 33% S&P 500 under the "mixed portfolio" option would be close to what you describe above.

 

[Dtail]

I would think that a mixed portolio of 34% 1-month Treasury, 33% LT Corporate Bond (or LT Treasury or a combination of both) and 33% S&P 500 under the "mixed portfolio" option would be close to what you describe above.

Yes, likely more accurate than a Commercial Paper choice.