Cash vs Bonds

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Cash vs Bonds

Post by jimmy2017 » Thu Jul 11, 2019 2:22 am

How should I think about what % of Cash vs Bonds I should be holding in my asset allocation? VBTLX has an Estimated SEC yield of 2.53% while high yield savings can offer a Guaranteed 2.2%. Also cash is more liquid and won't drop in price like bonds can. Thank you!

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Re: Cash vs Bonds

Post by bluquark » Thu Jul 11, 2019 2:53 am

There's a discussion on the same topic ongoing here: viewtopic.php?p=4624933#p4624933
70/30 portfolio | Equity: global market weight | Bonds: 20% long-term munis - 10% LEMB

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Re: Cash vs Bonds

Post by Sconie » Thu Jul 11, 2019 4:39 am

The link bluquark posted is an excellent discussion of the matter. That said, and as per your question, should you be thinking about it? Absolutely! My only other thought is that dependent upon the rate(s) you can obtain, it might be worthwhile for you to consider one of more CDs as a possibility---CDs potentially being a "sweet spot" in terms of duration.
I know you think you understand what you thought I said but I'm not sure you realize that what you heard is not what I meant. - Alan Greenspan

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