12-03-2021, 03:40 PM
(12-03-2021, 02:33 PM)fenders53 Wrote:(12-03-2021, 02:09 PM)kered Wrote: What percentage do you guys typically keep in cash? My main issue is i dont keep enough. Every time i build up my cash reserves a dip happens and i spend it.Right or wrong here is what I did and your mileage may vary.
Age 25 every dime I could scrape up invested.
Age 40 the tech bubble crash tore my face off and I was sick that I couldn't buy enough, but I had a good job and my 401K contributions helped the early 2000s suck less. I vowed I would never be cashless again. About 5% in Short term Gov securities and 5% in bonds. That allowed me to throw a few bucks n the market on a 10% dip. When the market recovered the money went back to safe. Some might call that market timing. I call it improving my mental health. I hate it when I can't buy a sale. It truly distracts me from the majority of my port getting pounded.
Age 45 the Financial crisis was coming and I smelled trouble. The one and only time I tried to market time in a big way. Moved half my money to ST GOV bonds. When the world melted down I started averaging back into the market Worked out well. I got lucky,
Age 55 and retirement is approaching. Bonds suck now so about 15%-30% cash. I use cash to secure the puts I sell for income so my cash balance can swing wildly if the market isn't right to sell puts.
Age 59 and I plan to retire soon. I am willing to go 90% in the market but only if it gets absolutely hammered.
After all that typing, I think 10% cash is appropriate most of the time. I can't prove it's the correct answer, but buying stuff 25%+ off seems like a good idea to me.
Yea im 35 now. 401k is the main portion and i dont touch that at all other than the bi-weekly paycheck dump into it. I dont factor that in any equation. I also have a roth through schwab. Every time i get 5% cash and see a dip i buy down to 1-2%. I think im finally gonna get my cash up to 10% because i can see these valuations finally dropping back to reality and i wanna be ready.