Does anyone hold cash?

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bawr
Posts: 45
Joined: Thu May 19, 2011 9:10 pm

Re: Does anyone hold cash?

Post by bawr » Sat Oct 07, 2017 4:42 am

I keep over three years' living expenses in cash. This is currently 1.4% of my investment portfolio.

30sep16
Posts: 38
Joined: Fri Sep 30, 2016 8:52 pm

Re: Does anyone hold cash?

Post by 30sep16 » Mon Oct 09, 2017 12:23 am

92.5% cash
7.5% bitcoin

A barbell portfolio. Up 27% for the year.

My 7.5% allocation to Bitcoin is up 360%. I rebalance the profits off the Bitcoin every 4 to 8 weeks. It can crash to zero, but I've made that 7.5% several times over so I'm still way ahead of that were to happen.

TonyDAntonio
Posts: 279
Joined: Thu Mar 03, 2016 8:32 pm

Re: Does anyone hold cash?

Post by TonyDAntonio » Mon Oct 09, 2017 12:46 am

hulburt1 wrote:
Wed Oct 04, 2017 3:22 pm
We are 64,62-We have 150,000 in cash 3 years living, The rest is in Stocks....We have close to 2.3m. We have our dividends go to our cash $30000 last year.. We will not take SS until 70. I do not have bond...When we have a good year will put more in cash. This year we are up 27% so will move more in cash. I keep a close eye on the 1 stock I have and that's Facebook. If we have a bad year or 2 will not need to cash in funds. This is my plan and its worked well for 10 years.
This is almost our exact situation and I've started to build even a bigger MMF/EE bonds/I bonds/savings account/stable value (ie. cash) position now that the market is and has been at record highs. We are only two years into retirement but now have 5-6 years worth of expenses in our cash positions. This is 20% of our investments with the rest in stocks.

bawr
Posts: 45
Joined: Thu May 19, 2011 9:10 pm

Re: Does anyone hold cash?

Post by bawr » Mon Oct 09, 2017 2:49 am

30sep16 wrote:
Mon Oct 09, 2017 12:23 am
92.5% cash
7.5% bitcoin

A barbell portfolio. Up 27% for the year.

My 7.5% allocation to Bitcoin is up 360%. I rebalance the profits off the Bitcoin every 4 to 8 weeks. It can crash to zero, but I've made that 7.5% several times over so I'm still way ahead of that were to happen.
Very nice.

tucker99
Posts: 17
Joined: Tue May 10, 2016 11:07 am

Re: Does anyone hold cash?

Post by tucker99 » Mon Oct 09, 2017 10:56 am

3-months from retirement. None here. Have an equity line of credit on the house if we need money ASAP. I'll use a distribution to pay off the line of credit. Holding cash is a very old-school principle. Yea, I've read about it on bogleheads but still can't see valid reasons to hold cash instead of having it working for you. VTIAX & VTSAX are both returning over 16% for the year. 2-years worth of expenses not taking advantage of those returns does not seem prudent. But that's just me...

tucker99
Posts: 17
Joined: Tue May 10, 2016 11:07 am

Re: Does anyone hold cash?

Post by tucker99 » Mon Oct 09, 2017 11:05 am

3-months from retirement. None here. Have an equity line of credit on the house if we need money ASAP. I'll use a distribution to pay off the line of credit. Holding cash is a very old-school principle. Yea, I've read about it on bogleheads but still can't see valid reasons to hold cash instead of having it working for you. VTIAX & VTSAX are both returning over 16% for the year. 2-years worth of expenses not taking advantage of those returns does not seem prudent. But that's just me...

DrGoogle2017
Posts: 292
Joined: Mon Aug 14, 2017 12:31 pm

Re: Does anyone hold cash?

Post by DrGoogle2017 » Mon Oct 09, 2017 11:10 am

If you count VCSH as cash then I have over 40% cash, my AA needs rebalancing but I’m going to let it ride until year end before rebancing.

kathyauburn
Posts: 175
Joined: Thu May 07, 2015 12:25 pm

Re: Does anyone hold cash?

Post by kathyauburn » Mon Oct 09, 2017 11:36 am

Blueskies123 wrote:
Wed Oct 04, 2017 7:38 am
I keep two years of expenses in cash now that I am retired.
I think this makes sense. I do the same.

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jhfenton
Posts: 2041
Joined: Sat Feb 07, 2015 11:17 am
Location: Ohio

Re: Does anyone hold cash?

Post by jhfenton » Mon Oct 09, 2017 11:52 am

We do not (usually) hold significant cash inside our "retirement assets." We do hold cash in checking (current spending) and in high-yield savings (emergency fund), but for reasons of mental accounting, those are not "investment assets."

We do hold some VSCSX (Vanguard Short-Term Corporate Bond Index), but I don't consider that cash. Nor do I consider our brokered CDs cash. Nor our intermediate treasuries.

(I added the usually because my entire HSA is in cash today as I await my trustee-to-trustee transfer to go through. I temporarily moved an equivalent amount from bond funds into equities to offset the sale of equities in my HSA. So for the moment we have a slug of cash instead of some of our usual bond holdings.)

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