I'm sitting on about 85k in cash. That represents a fair portion of my overall worth/investments, maybe 20%. I keep planning to start injecting it into the market but it keeps gong down. There was a little rally in November but it's still looking bleak out there. I max my 401k and have a separate account that's primarily VOO, but this cash position is burning a hole in my pocket. Maybe I'll buy some land :(
Is anyone accumulating cash moreso than you have in the past? It's just felt right over the last year.
cash? why in the bloody hell would you be holding cash, like, ever? is cash making you any money? you should be answering no.
I want you to put ALL of that into a total stock market index fund, or, if you’re into fancier investing, 70% total stock/30% total international stock. What you “feel” is completely irrelevant. It is a fact that stocks are the most effective way to build wealth, and the best way to own stocks is through low cost index funds. oh, and you can’t time the market. What, are you waiting for stocks to go UP before putting that money to work? Rejoice in down days and bad weeks and months - you’re putting new money to work at a discount, and your current money that’s invested will be reinvesting it’s dividends to buy those lower priced shares. But not if you’re in cash, wringing your hands, worrying.
It's making me 3% in an ally savings account. Better than nothing
I'm sitting on about 85k in cash. That represents a fair portion of my overall worth/investments, maybe 20%. I keep planning to start injecting it into the market but it keeps gong down. There was a little rally in November but it's still looking bleak out there. I max my 401k and have a separate account that's primarily VOO, but this cash position is burning a hole in my pocket. Maybe I'll buy some land :(
Is anyone accumulating cash moreso than you have in the past? It's just felt right over the last year.
I have a lot of cash on hand because I don’t feel like the stock market is done going down (P/S, while down are still quite elevated, Shiller CAPE is elevated, 3 mo to 10 yr yield curve inversion is pretty extreme, Fed in quantitative tightening mode and not going to “pivot” anytime soon), but, you should still have that money invested even if you do plan on eventually putting it back in stocks. Money market funds are paying 3.75-4% right now, and some 6 mo CDs are north of 4.5%. Bonds are attractively priced for yield to maturity as well.
Coffee cup is generally right, don’t try to get too cute with the market, but, then again, probably almost everyone on this message board has only lived through a period of Fed easing and two to three decades of higher returns in equities, which aren’t always the norm, historically speaking.
cash? why in the bloody hell would you be holding cash, like, ever? is cash making you any money? you should be answering no.
I want you to put ALL of that into a total stock market index fund, or, if you’re into fancier investing, 70% total stock/30% total international stock. What you “feel” is completely irrelevant. It is a fact that stocks are the most effective way to build wealth, and the best way to own stocks is through low cost index funds. oh, and you can’t time the market. What, are you waiting for stocks to go UP before putting that money to work? Rejoice in down days and bad weeks and months - you’re putting new money to work at a discount, and your current money that’s invested will be reinvesting it’s dividends to buy those lower priced shares. But not if you’re in cash, wringing your hands, worrying.
It's making me 3% in an ally savings account. Better than nothing
That’s awesome, I actually use Ally myself for my emergency fund. Kudos to you for researching a high-yield, no-fee option for cash. just don’t have any in there that should be invested!
Do you mean literal cash or easily liquid investments? I always keep $100,000 cash in the home safe and $5,000,000 in something I can convert to cash without many fees. The real money is in long term investments that would cost a not insignificant amount to cash out quickly.
As far as actual cash goes I have somewhere around $40 and it's the same $40 that I've had for months. I never spend cash at the store. I've only recently gone back to work in person once a week and even the vending machines take plastic, let alone all the lunch options. As for my "fortune" it's comparable to people of my age and occupation.
I had $216 in cash in my wallet yesterday. Then I bought a bottle of Chambord, tequila, pomegranate juice, and limes to make a black raspberry margarita. I used about $124 for that so now I have $92 left.
I've got several hundred thou., mostly in trading brokerage account, that is temporarily in cash until I feel more resolute about market direction. I could put it in things CDs or interest bearing money market funds or short term treasuries but even at a few percent annually, they pay so little that I would prefer to keep it liquid and available to trade as necessary. Picking up a percent or two or three is rather commonplace when trading, so I am not concerned about losing a few percent while it is temporarily in cash. I also have a small percentage in govt. bonds, fwiw.
I had $216 in cash in my wallet yesterday. Then I bought a bottle of Chambord, tequila, pomegranate juice, and limes to make a black raspberry margarita. I used about $124 for that so now I have $92 left.
Wow...you carry that much dough with you? I hope you live in a nice area.
1) Some say everyone needs 3 months of cash, not cash equivalents but cash. Others say everyone needs at least 6 months of cash, not cash equivalents. I don't disagree but ... 2) Everyone between age 18 to 72 should buy equities. No matter if you have $100 of debt or 10 million in debt. Don't wait until you have 3 or 6 months of cash to buy equities. 3) The exact amount of equities one buys depends on risk tolerance and debt. I bought the equivalent of SPY when it was $30-something per share. I didn't wait until I had 6 months of cash. I didn't wait until I was debt free. Since I've been 20 or 21, I've had some debt. To answer O.P.'s question, I have between 4 and 5 months of cash. June through October, I bought more U.S. equities than usual.