Anyone else hoarding cash right now?

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JustinR
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Anyone else hoarding cash right now?

Post by JustinR »

I stopped investing in my taxable back in March and can't bring myself to start again. I'm still investing automatically in my 401k.

I'm just holding onto my cash in case of a worst case scenario if society collapses and I need liquid funds. I don't mean the case where you'd have to live in a bunker and have guns/ammo. There are smaller degrees of societal collapse than that.

So far it seems like it won't be the case, but who knows? There's no end in sight.


Edit: By cash, I mean in a bank account. Like overfunding your emergency fund, as opposed to investing.
Last edited by JustinR on Wed Aug 05, 2020 11:50 pm, edited 3 times in total.
Jack FFR1846
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Re: Anyone else hoarding cash right now?

Post by Jack FFR1846 »

Nope.

Have continued putting money in as I have been. If you ignore the news, you don't get all hyped up and do silly things.
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Stinky
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Re: Anyone else hoarding cash right now?

Post by Stinky »

Not hoarding cash. Still invested per Investment Policy Statement.

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columbia
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Re: Anyone else hoarding cash right now?

Post by columbia »

Someone is going to be left holding the bag, so it’s reasonable to consider whether that will be those with cash or those with long bonds.
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Re: Anyone else hoarding cash right now?

Post by Grt2bOutdoors »

I hold enough cash, the rest is going in according to my asset allocation.
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arcticpineapplecorp.
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Re: Anyone else hoarding cash right now?

Post by arcticpineapplecorp. »

JustinR wrote: Wed Aug 05, 2020 6:34 am I stopped investing in my taxable back in March and can't bring myself to start again. I'm still investing automatically in my 401k.

I'm just holding onto my cash in case of a worst case scenario if society collapses and I need liquid funds. I don't mean the case where you'd have to live in a bunker and have guns/ammo. There are smaller degrees of societal collapse than that.

So far it seems like it won't be the case, but who knows? There's no end in sight.
can you give some examples? Are you talking about a job loss? What else is there? credit card machines stop working? why else would you need large amounts of cash?
It's "Stay" the course, not Stray the Course. Buy and Hold works. You should really try it sometime. Get a plan: www.bogleheads.org/wiki/Investment_policy_statement
KlangFool
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Re: Anyone else hoarding cash right now?

Post by KlangFool »

I have 2 years of expenses in cash. I bought some gold and silver. I would invest the rest until I reach my number. Then, I may buy more gold and silver.

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egrets
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Re: Anyone else hoarding cash right now?

Post by egrets »

KlangFool wrote: Wed Aug 05, 2020 6:48 am I have 2 years of expenses in cash. I bought some gold and silver. I would invest the rest until I reach my number. Then, I may buy more gold and silver.

KlangFool
I never understand why people think gold is valuable if society collapses. It's not like you can eat it.
Badger97
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Re: Anyone else hoarding cash right now?

Post by Badger97 »

We are holding more cash than usual, but I don't know that it's hoarding per se.

We have a tuition bill coming due, a huge tax bill due next April, and are planning to build a new house. So having cash is important, but it has nothing to do with the state of the market.

We are planning to do a cash-out refinance on our main house and maybe even a second home. That would move about $300K of equity from the house into cash. At these rates, we definitely want to do this.
Last edited by Badger97 on Wed Aug 05, 2020 8:03 am, edited 1 time in total.
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Re: Anyone else hoarding cash right now?

Post by fredflinstone »

egrets wrote: Wed Aug 05, 2020 6:51 am
KlangFool wrote: Wed Aug 05, 2020 6:48 am I have 2 years of expenses in cash. I bought some gold and silver. I would invest the rest until I reach my number. Then, I may buy more gold and silver.

KlangFool
I never understand why people think gold is valuable if society collapses. It's not like you can eat it.
Some people who dislike gold as an investment say:
"If society collapses, your gold will be worthless. It's not like you can eat it."

Other people who dislike gold as an investment say:
"If society collapses, your gold will be stolen. It's not like you can defend it."

As someone else in this Forum pointed our recently, both of these statements cannot be true at the same time. Either gold is going to be so worthless that nobody wants it, or it is going to be so valuable that people will risk their lives stealing it. I suspect the latter.
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KlangFool
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Re: Anyone else hoarding cash right now?

Post by KlangFool »

fredflinstone wrote: Wed Aug 05, 2020 7:00 am
egrets wrote: Wed Aug 05, 2020 6:51 am
KlangFool wrote: Wed Aug 05, 2020 6:48 am I have 2 years of expenses in cash. I bought some gold and silver. I would invest the rest until I reach my number. Then, I may buy more gold and silver.

KlangFool
I never understand why people think gold is valuable if society collapses. It's not like you can eat it.
Some people who dislike gold as an investment say:
"If society collapses, your gold will be worthless. It's not like you can eat it."

Other people who dislike gold as an investment say:
"If society collapses, your gold will be stolen. It's not like you can defend it."

As someone else in this Forum pointed our recently, both of these statements cannot be true at the same time. Either gold is going to be so worthless that nobody wants it, or it is going to be so valuable that people will risk their lives stealing it. I suspect the latter.
Diversification is a good thing. I may not need the gold/silver. But, If I need it, I have it. Ditto on food, water, and so on. If someone is worried enough to hold more cash, it makes sense to keep a few hundred to a thousand in Gold and Silver too.

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Re: Anyone else hoarding cash right now?

Post by KlangFool »

Hoping to be lucky is not a good strategy. Be prepared for a full range of possibilities is a good thing. Diversification is a good thing.

If you are worried enough to hold more cash, you should stock up some food, water, silver, and gold.

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OpenMinded1
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Re: Anyone else hoarding cash right now?

Post by OpenMinded1 »

egrets wrote: Wed Aug 05, 2020 6:51 am
KlangFool wrote: Wed Aug 05, 2020 6:48 am I have 2 years of expenses in cash. I bought some gold and silver. I would invest the rest until I reach my number. Then, I may buy more gold and silver.

KlangFool
I never understand why people think gold is valuable if society collapses. It's not like you can eat it.
The OP states, "I don't mean the case where you'd have to live in a bunker and have guns/ammo. There are smaller degrees of societal collapse than that."
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mmmodem
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Re: Anyone else hoarding cash right now?

Post by mmmodem »

Not hoarding cash. I'm holding the same amount I considered sufficient before the shutdown and now. In fact, I maxed out my 401k for the year after a Really Bad Day as confirmed here on BH.

I know that I know nothing about the stock market. I might be able to reasonably predict with facts and data what will happen to my job or what will happen with the pandemic. But there is no chance I can predict what the market will do based on that prediction.

I predicted the market would tank further in March after I maxed out my 401k. It didn't. The economy is not the market. The market is fickle and will do whatever it wants. I couldn't even predict last month that my sister whom introduced me to Boglehead index investing would capitulate and move all her equity to cash.
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Re: Anyone else hoarding cash right now?

Post by GoldenFinch »

JustinR wrote: Wed Aug 05, 2020 6:34 am I stopped investing in my taxable back in March and can't bring myself to start again. I'm still investing automatically in my 401k.

I'm just holding onto my cash in case of a worst case scenario if society collapses and I need liquid funds. I don't mean the case where you'd have to live in a bunker and have guns/ammo. There are smaller degrees of societal collapse than that.

So far it seems like it won't be the case, but who knows? There's no end in sight.
I think all of the bad news is getting to you because, well, it’s bad. Also, you see “no end in sight.” That’s enough to make a lot of people stop in their tracks, which is basically what you are doing. Maybe after you have enough cash sitting in the bank to make you feel a little more secure you could set up an automatic investment plan with your new money coming in and get back on track. I completely understand how you feel.
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Re: Anyone else hoarding cash right now?

Post by Broken Man 1999 »

No, I am not hoarding cash. I still have my desired allotment of cash, to pay about half of our expenses each month. The cash has a life-span of about 1-2 weeks. Then I have virtually no cash at all.

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magicrat
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Re: Anyone else hoarding cash right now?

Post by magicrat »

OP - what do you think will happen to your cash if society collapses?
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Blueskies123
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Re: Anyone else hoarding cash right now?

Post by Blueskies123 »

Society does not have to collapse for gold to be useful in a portfolio. I am old enough to remember the prime rate at 16%. My first mortgage was at 12% if I recall correctly. High inflation or hyperinflation is probably a more realistic scenario than societal collapse but both could happen, its just not a probable outcome.
I have 3% of my portfolio in gold ETFs. I would not think large gold bars will be useful in a collapse but a few gold coins might. They will not be worth a lot and you will not get change back but they might be worth something.
If I recall, gold was fought over in the dark ages so yes it will have value in a collapse.
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Re: Anyone else hoarding cash right now?

Post by midareff »

columbia wrote: Wed Aug 05, 2020 6:43 am Someone is going to be left holding the bag, so it’s reasonable to consider whether that will be those with cash or those with long bonds.
or both...

I've held roughly 4% of total portfolio in cash for the last couple of decades. I did however drop our WR significantly since there are no cruises or travel to pay for this year.
Last edited by midareff on Wed Aug 05, 2020 8:03 am, edited 1 time in total.
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goingup
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Re: Anyone else hoarding cash right now?

Post by goingup »

JustinR wrote: Wed Aug 05, 2020 6:34 am I stopped investing in my taxable back in March and can't bring myself to start again. I'm still investing automatically in my 401k.
Automatic investing is a real benefit of 401K participation. You might consider automating other accounts for periodic (monthly, quarterly) investing too.

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Ivygirl
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Re: Anyone else hoarding cash right now?

Post by Ivygirl »

Yes, I am hoarding cash.

In January my retirement was nearly all in a Fidelity 2030 target retirement fund. I was satisfied with its results, but didn't really like the high percentage of stocks, which was something like 67%. I thought that was too much stock for a person about to turn 56. Covid-19 hit and I did nothing, just waited, and was not particularly anxious. The economy did not seem to me to have any underlying serious flaws, it had just been put in cold storage. When the market recovered, I switched my new contributions and employer profit-sharing payments to Fidelity bond index and a Fidelity income fund to balance a little better for my age.

As for cash: I have just finished up a 10-year plan which required pretty much putting my life on hold in order to accumulate retirement savings. Now I have cash as the excess retirement saving has ended, and it is piling up in a savings account. I meant to do home improvements with it, but haven't pulled the trigger.

I don't think what our country is going through is a crisis of money or material things at all, I think it is a crisis of morals. Young people thrashing around to reject the moral compass of their elders and find some solid ground to formulate a new one. Eventually I believe they will "rediscover" morality (which doesn't change) and give it a rebranding; in between expect lots of upheaval.

Cash is very handy for maneuverability. After 10 years of being frozen in place with a rigid plan, I am ready to look around and consider doing something different. It's time to make another 10-year plan and until it takes shape I will pile up cash.

I don't expect doomsday or crash of civilization. We are undergoing change, not destruction.

I do expect science to take a serious hit to its credibility soon. There's my intuitive prediction I'll put out there. Science and scientists are going to go through their own painful crisis and rediscovery of their first principles and how far they have strayed from them in seeking things that are less than the truth, very similar to what has happened with the media. How to play that in the market I have no idea, sorry.
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Re: Anyone else hoarding cash right now?

Post by KlangFool »

Blueskies123 wrote: Wed Aug 05, 2020 7:58 am Society does not have to collapse for gold to be useful in a portfolio. I am old enough to remember the prime rate at 16%. My first mortgage was at 12% if I recall correctly. High inflation or hyperinflation is probably a more realistic scenario than societal collapse but both could happen, its just not a probable outcome.
I have 3% of my portfolio in gold ETFs. I would not think large gold bars will be useful in a collapse but a few gold coins might. They will not be worth a lot and you will not get change back but they might be worth something.
If I recall, gold was fought over in the dark ages so yes it will have value in a collapse.
Blueskies123,

Even if the society collapses eventually, it could start with a high inflation/hyperinflation phase first. Folks with gold/silver can get out first during that phase.

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simplesimon
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Re: Anyone else hoarding cash right now?

Post by simplesimon »

JustinR wrote: Wed Aug 05, 2020 6:34 am I stopped investing in my taxable back in March and can't bring myself to start again. I'm still investing automatically in my 401k.

I'm just holding onto my cash in case of a worst case scenario if society collapses and I need liquid funds. I don't mean the case where you'd have to live in a bunker and have guns/ammo. There are smaller degrees of societal collapse than that.

So far it seems like it won't be the case, but who knows? There's no end in sight.
You mean physical cash, right?
Harley BenV
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Re: Anyone else hoarding cash right now?

Post by Harley BenV »

Agree with Blueskies123 Gold is at an all time high. Historically it plunges right after and stays down for years. So many good Fortune 500 companies are still way down from COVID and it’s a real buying opportunity. As for hyperinflation it won't happen overnight, and taking calculated risks will be wiser
trevorshhh
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Re: Anyone else hoarding cash right now?

Post by trevorshhh »

According to my IPS, I increased my emergency fund due to instability in my paycheck (tied to profit sharing, and profits took a hit at my company as a result of this). However, I have kept investing in taxable every paycheck (also according to IPS).
All in VTI, VXUS, BND and equivalents.
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Re: Anyone else hoarding cash right now?

Post by Wanderingwheelz »

egrets wrote: Wed Aug 05, 2020 6:51 am
KlangFool wrote: Wed Aug 05, 2020 6:48 am I have 2 years of expenses in cash. I bought some gold and silver. I would invest the rest until I reach my number. Then, I may buy more gold and silver.

KlangFool
I never understand why people think gold is valuable if society collapses. It's not like you can eat it.
Clang is currently unemployed too. I wish him the best, regardless, but to have 2 years of expenses set aside and to be buying precious metals with unemployment insurance seems risky to me.

If it were me I’d be fortifying my emergency fund each month if I had free cash after my enhanced UI.
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Re: Anyone else hoarding cash right now?

Post by Silverado »

JustinR wrote: Wed Aug 05, 2020 6:34 am I stopped investing in my taxable back in March and can't bring myself to start again. I'm still investing automatically in my 401k.

I'm just holding onto my cash in case of a worst case scenario if society collapses and I need liquid funds. I don't mean the case where you'd have to live in a bunker and have guns/ammo. There are smaller degrees of societal collapse than that.

So far it seems like it won't be the case, but who knows? There's no end in sight.
Ouch. Nope, we put a large figure in taxable each month on the fifth. All in Vanguard Total Stock Index. Never even had a discussion about stopping. The only discussion we had was how much to increase it starting this month as we have cut a few expenses down. We decided to up it 10%, so that new amount goes in today.

Also, made no changes in 401k accounts.

There’s always a disaster looming in the future, and plenty of disasters in the rear view mirror. The world was supposed to implode a number of times. This time could be different, could be the same. Do not really care to try and predict it. I wear a mask when I go out, and avoid crowds. But I have always done that (‘cept the mask part...)
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Re: Anyone else hoarding cash right now?

Post by MikeG62 »

JustinR wrote: Wed Aug 05, 2020 6:34 am I stopped investing in my taxable back in March and can't bring myself to start again. I'm still investing automatically in my 401k.

I'm just holding onto my cash in case of a worst case scenario if society collapses and I need liquid funds. I don't mean the case where you'd have to live in a bunker and have guns/ammo. There are smaller degrees of societal collapse than that.

So far it seems like it won't be the case, but who knows? There's no end in sight.
Can you define what you consider cash? Is this money in a MMF or savings account? Does it include CD's? My answer would change depending on what you define as cash for the purposes of your question.
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Silverado
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Re: Anyone else hoarding cash right now?

Post by Silverado »

JustinR wrote: Wed Aug 05, 2020 6:34 am I stopped investing in my taxable back in March and can't bring myself to start again. I'm still investing automatically in my 401k.

I'm just holding onto my cash in case of a worst case scenario if society collapses and I need liquid funds. I don't mean the case where you'd have to live in a bunker and have guns/ammo. There are smaller degrees of societal collapse than that.

So far it seems like it won't be the case, but who knows? There's no end in sight.
Also, do you mean you are going into a bank to withdraw the amount you would otherwise have been investing? What breakdown of bills did you decide on? Obviously from what I saw on the news the other week, it is doubtful you are getting rolls of quarters...
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Re: Anyone else hoarding cash right now?

Post by Tim_in_GA »

I'm holding a lot more cash than usual. I typically have one year's expenses in cash but now we have two year's worth. My wife's home business suddenly switched to making masks and the sales were incredible. Retirement is 6 years away and we'll move overseas so we're thinking about getting an account set up to start building up some local currency there. But my wife would have to travel home to open the account in person and that's not going to happen for a while.
Last edited by Tim_in_GA on Wed Aug 05, 2020 8:23 am, edited 2 times in total.
Northster
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Re: Anyone else hoarding cash right now?

Post by Northster »

I wouldn't say hoarding, but I did set aside enough cash to fund my RMDs for the next couple of years, though normally I hold very little cash. My bond funds have been doing well lately but I am doubtful that can continue.
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Re: Anyone else hoarding cash right now?

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whodidntante
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Re: Anyone else hoarding cash right now?

Post by whodidntante »

The economy is terrible beyond anything I have seen before. But that's no reason to sell stocks, is it? :twisted:
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Kenkat
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Re: Anyone else hoarding cash right now?

Post by Kenkat »

I kept a little extra physical cash on hand at the beginning of the pandemic in March due to all of the uncertainty but have discontinued that. My cash holdings in non-physical form (bank accounts, money markets) have increased, in part due to reduced overall expenses resulting from working from home and basically not doing much in terms of entertainment. This is not intentional and maybe someday I will figure out what to do with some of this money but for now it’s staying where it is at.

In terms of gold and silver, a key feature is that it is transportable and not tied to any specific country’s currency, government or economy. In the excellent book A Gentleman in Moscow - which I heard about on the forum, Count Rostov, a Russian aristocrat turned former person by the Russian Revolution, survived in part from gold coins that had been stashed in the family furniture. A work of fiction, yes. But a story very much rooted in the realities of a turbulent time.
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Re: Anyone else hoarding cash right now?

Post by andypanda »

"hoarding cash"

Are we discussing cash, as in folding money?
Or cash, as in savings accounts, CDs, money market accounts, etc?

I like cash. Both kinds. I like having folding money handy and always have. And old junk silver I've had since the '60s and '70s. Heck, I even have two one-ounce gold proof coins from the '90s and some fractional ones, too.

What's the problem with living off your pensions and SSA retirement, having taxable and deferred comp accounts, silver, gold, a few hundred thou in CDs and money market accounts and enough cash in hand? Okay, I'll tell you, you have too much money and buy a bunch of junk like extra fishing gear, gardening supplies, toys for the grandkids and just plain stuff like new tools.

Life was simpler all those years when I was living like a starving grad student and saving, saving, saving. ;) Lord help us if we ever start drawing down the investments. We'll need to build a barn to go with the 3-car garage.
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Re: Anyone else hoarding cash right now?

Post by KlangFool »

Wanderingwheelz wrote: Wed Aug 05, 2020 8:10 am
egrets wrote: Wed Aug 05, 2020 6:51 am
KlangFool wrote: Wed Aug 05, 2020 6:48 am I have 2 years of expenses in cash. I bought some gold and silver. I would invest the rest until I reach my number. Then, I may buy more gold and silver.

KlangFool
I never understand why people think gold is valuable if society collapses. It's not like you can eat it.
Clang is currently unemployed too. I wish him the best, regardless, but to have 2 years of expenses set aside and to be buying precious metals with unemployment insurance seems risky to me.

If it were me I’d be fortifying my emergency fund each month if I had free cash after my enhanced UI.
Wanderingwheelz,

I have 2 years of CASH, 10 years of bonds, and 15 years in the stock. To achieve further diversification, I need to buy more gold/silver.

My annual expense is about 60K per year. The maximum unemployment benefit without the Federal enhancement and extension is only about 10K.

KlangFool
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Re: Anyone else hoarding cash right now?

Post by mak1277 »

Kenkat wrote: Wed Aug 05, 2020 8:24 am I kept a little extra physical cash on hand at the beginning of the pandemic in March due to all of the uncertainty but have discontinued that. My cash holdings in non-physical form (bank accounts, money markets) have increased, in part due to reduced overall expenses resulting from working from home and basically not doing much in terms of entertainment. This is not intentional and maybe someday I will figure out what to do with some of this money but for now it’s staying where it is at.

In terms of gold and silver, a key feature is that it is transportable and not tied to any specific country’s currency, government or economy. In the excellent book A Gentleman in Moscow - which I heard about on the forum, Count Rostov, a Russian aristocrat turned former person by the Russian Revolution, survived in part from gold coins that had been stashed in the family furniture. A work of fiction, yes. But a story very much rooted in the realities of a turbulent time.
Yes, I definitely think gold/silver would be a more useful asset than currency in the event of societal collapse. Diamonds also, probably. But nothing would be as valuable as bullets.

In terms of the OP, I exercised some options in February and luckily missed the huge market dip, so I am very heavy in cash right now. I'm slowly dripping it back in, but it will take a long while before I'm back at my "correct" AA. I'm in no hurry.
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Re: Anyone else hoarding cash right now?

Post by Valuethinker »

JustinR wrote: Wed Aug 05, 2020 6:34 am I stopped investing in my taxable back in March and can't bring myself to start again. I'm still investing automatically in my 401k.

I'm just holding onto my cash in case of a worst case scenario if society collapses and I need liquid funds. I don't mean the case where you'd have to live in a bunker and have guns/ammo. There are smaller degrees of societal collapse than that.

So far it seems like it won't be the case, but who knows? There's no end in sight.
I would not steer my asset allocation in that way.

*except* if I was afraid I might lose my job (for example in US state/ local/ university employment right now).

Then I would increase my emergency cash reserves.

Societal collapse? I worry in a distant way. But 12 months ago I never would have imagined living in a lockdown type scenario, and for us over 50s in England, that's basically what is in prospect, indefinitely - because even countries that have been far more successful than us at suppression are having outbreaks, and if you are over 50 you are in a danger zone*. I mean I go out and do grocery shopping and buy takeaway coffees, but no travel plans, no commuting, none of the galleries/ museums/ cinemas/ theatres that London offers, no meals out etc.

And society did not collapse.

* not just mortality which seems to rise linearly with age. But the side effects of having had the damn thing can include what appears to be permanent damage to your health.

EDIT

I should note I use far less cash now. Since cash is a way to spread contamination, I am using touch-and-pay on my credit card for 95% of transactions (all those under £45, all online transactions) and type PIN & pay for about 4%. So less than 1% in cash.
MNSooner
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Re: Anyone else hoarding cash right now?

Post by MNSooner »

Does it seem internally inconsistent to use “hoarding cash” and “hyperinflation” in the same sentence?

It seems like flailing about trying to find a justification a poorly defined anxiety.

To answer the OP’s question, no, I am not changing my asset allocation. I don’t know nothin’, so I’m staying the course.
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Re: Anyone else hoarding cash right now?

Post by andypanda »

" I am old enough to remember the prime rate at 16%. My first mortgage was at 12% if I recall correctly."

My first mortgage was a conventional 30-year with 25% down in January, 1980. The rate was 12.75%. I was so happy to get it before the rates went up.

The high point was 16.32% in April. www.freddiemac.com/pmms/pmms30.html1982 October of 1982 saw a rate of 18.45%.
Last edited by andypanda on Wed Aug 05, 2020 8:54 am, edited 1 time in total.
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AerialWombat
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Location: Cash Canyon / Cashville

Re: Anyone else hoarding cash right now?

Post by AerialWombat »

I’m holding the same ratio of cash to not-cash as before the pandemic. Which happens to be a much higher ratio of cash than most Bogleheads. My behavior hasn’t changed one iota.
KyleAAA
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Re: Anyone else hoarding cash right now?

Post by KyleAAA »

egrets wrote: Wed Aug 05, 2020 6:51 am
KlangFool wrote: Wed Aug 05, 2020 6:48 am I have 2 years of expenses in cash. I bought some gold and silver. I would invest the rest until I reach my number. Then, I may buy more gold and silver.

KlangFool
I never understand why people think gold is valuable if society collapses. It's not like you can eat it.
Because gold has been valuable in almost every other modern governmental collapse on record.
spectec
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Re: Anyone else hoarding cash right now?

Post by spectec »

Approaching our mid-70's, we stay around 65-70% cash. I guess you'd cal that a 5% band. That's where we've been for several years. Some may say we've been hoarding cash for a long time, but that's our SWAN number. As we get older, we will probably drift closer to 50-50 for legacy purposes. But for now, our focus is on insuring we won't be a financial burden on our family or the government.
Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it. - Will Rogers
H-Town
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Re: Anyone else hoarding cash right now?

Post by H-Town »

JustinR wrote: Wed Aug 05, 2020 6:34 am I stopped investing in my taxable back in March and can't bring myself to start again. I'm still investing automatically in my 401k.

I'm just holding onto my cash in case of a worst case scenario if society collapses and I need liquid funds. I don't mean the case where you'd have to live in a bunker and have guns/ammo. There are smaller degrees of societal collapse than that.

So far it seems like it won't be the case, but who knows? There's no end in sight.
VTI price increased 46% since the lowest point in March. It seems like you missed a good run-up by deviating from boglehead's philosophy.

Now let's say when you put all cash in VTI, the market will crash 50%. Not only you missed the 46% run up, your stock portfolio will be also cut in half. Double whammy.

My point is: stick to boglehead's investment philosophy, rain or shine. You probably don't see it yet. But when you do, you will appreciate how simple and effective boglehead's investment philosophy is.
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StormShadow
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Re: Anyone else hoarding cash right now?

Post by StormShadow »

egrets wrote: Wed Aug 05, 2020 6:51 am
KlangFool wrote: Wed Aug 05, 2020 6:48 am I have 2 years of expenses in cash. I bought some gold and silver. I would invest the rest until I reach my number. Then, I may buy more gold and silver.

KlangFool
I never understand why people think gold is valuable if society collapses. It's not like you can eat it.
Probably because gold has been universally accepted as a valuable commodity across multiple civilizations throughout the planet for thousands of years.
fsrph
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Location: Pa.

Re: Anyone else hoarding cash right now?

Post by fsrph »

If you consider staggered CD as cash, then yes I have been significantly adding to these holdings. I considered this decision due to a special circumstance. I was exceptionally fortunate to purchase 3,4 and 5 year CD's (at 3-3.25%) that have an unlimited add on feature, so why not?

Francis
"Success is getting what you want. Happiness is wanting what you get." | Dale Carnegie
Blue456
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Re: Anyone else hoarding cash right now?

Post by Blue456 »

JustinR wrote: Wed Aug 05, 2020 6:34 am I stopped investing in my taxable back in March and can't bring myself to start again. I'm still investing automatically in my 401k.

I'm just holding onto my cash in case of a worst case scenario if society collapses and I need liquid funds. I don't mean the case where you'd have to live in a bunker and have guns/ammo. There are smaller degrees of societal collapse than that.

So far it seems like it won't be the case, but who knows? There's no end in sight.
Why would society collapse?
Blue456
Posts: 1018
Joined: Tue Jun 04, 2019 5:46 am

Re: Anyone else hoarding cash right now?

Post by Blue456 »

egrets wrote: Wed Aug 05, 2020 6:51 am
KlangFool wrote: Wed Aug 05, 2020 6:48 am I have 2 years of expenses in cash. I bought some gold and silver. I would invest the rest until I reach my number. Then, I may buy more gold and silver.

KlangFool
I never understand why people think gold is valuable if society collapses. It's not like you can eat it.
No gold is not valuable during collapse but it is valuable during rebuilding. Usually a decade after TEOTWAWKI.
sojersey
Posts: 20
Joined: Fri May 29, 2015 2:05 pm

Re: Anyone else hoarding cash right now?

Post by sojersey »

34 y/o… nothing too wild. I moved maybe 10% of my taxable into cash in case of another big dip at some point this year/overall uncertainty, but still doing normally scheduled contributions every two weeks (if that might seem a little nonsensical with a pile of money just sitting)

This is on top of currently holding about a year's worth of rent in A Bank Formerly Known As High Yield Savings. Fine with aggressive allocation overall as I don't have much to fear about my job security.

My plan for the 10% cash allocation in my taxable is to gradually move it back into equities until December as we get more news about vaccines, unemployment, and schools but mostly* just staying the course.

Doing something similar with bonds in my retirement accounts… currently around 20-25% and will gradually move them back down to 10% or so (sold all my bond holdings in these some time back in late March/April and reloaded them as equities have mostly recovered).

So some stupid timing attempts on my part but nothing particularly crazy.

Only other move I made was that I upped my 401k contribution rate end of February when things started tanking, so was able to buy more of the dip in that stretch and so I'm about done contributing to that for the year hopefully to balance the karma of lump-summing my Roth IRA and adding an small REIT allocation there in January :oops:

Will have a nice extra chunk of cash every month until December now that I'll probably also just DCA into things :sharebeer
Compound
Posts: 835
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Re: Anyone else hoarding cash right now?

Post by Compound »

H-Town wrote: Wed Aug 05, 2020 9:03 am
JustinR wrote: Wed Aug 05, 2020 6:34 am I stopped investing in my taxable back in March and can't bring myself to start again. I'm still investing automatically in my 401k.

I'm just holding onto my cash in case of a worst case scenario if society collapses and I need liquid funds. I don't mean the case where you'd have to live in a bunker and have guns/ammo. There are smaller degrees of societal collapse than that.

So far it seems like it won't be the case, but who knows? There's no end in sight.
VTI price increased 46% since the lowest point in March. It seems like you missed a good run-up by deviating from boglehead's philosophy.

Now let's say when you put all cash in VTI, the market will crash 50%. Not only you missed the 46% run up, your stock portfolio will be also cut in half. Double whammy.

My point is: stick to boglehead's investment philosophy, rain or shine. You probably don't see it yet. But when you do, you will appreciate how simple and effective boglehead's investment philosophy is.
Your second paragraph has me confused. Are you arguing against the OP putting their cash into the market?
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