MN-Investor
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Post by MN-Investor on Apr 20, 2011 18:13:18 GMT -5
Right now my DH and I have about 11.5% of our net worth in cash equivalents (cash, money market accounts, CDs, whatever). It would be nice to have a crystal ball and see what will happen to the stock market in the next two years.
What about you? What percentage of your investments are essentially in cash? Where do you see the stock market heading?
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souldoubt
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Post by souldoubt on Apr 20, 2011 18:40:07 GMT -5
About 29%. Has nothing to do with any forecast or belief about the market but rather the fact that I'm saving up for a down payment on a place. Once that happens some time in the next 12 months aside from an EF excess cash will be put into a taxable account that I have yet to open.
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Gardening Grandma
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Post by Gardening Grandma on Apr 20, 2011 18:41:30 GMT -5
"What about you? What percentage of your investments are essentially in cash? Where do you see the stock market heading?"
About 10%. I have no idea where the market is headed in the short term. I certainly hope and expect that, long term, it will go up.....
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Post by Savoir Faire-Demogague in NJ on Apr 20, 2011 19:21:12 GMT -5
An off the cuff calculation puts that percentage at roughly 7%.
About four months ago it was a bit higher, say 13%. I had suspicions about my job situation. While the landscape has not changed much regarding the job, I have moved some cash back into the market. I have a CD maturing soon and I will be moving some of it into the market.
I don't know where the markets will be going, but it is important to be fully invested.
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Post by Savoir Faire-Demogague in NJ on Apr 20, 2011 19:25:08 GMT -5
I certainly hope and expect that, long term, it will go up.....
History agrees with you, even though past performance is no guarantee of future returns...
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Deleted
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Post by Deleted on Apr 20, 2011 19:35:38 GMT -5
Does that include pension?
No pension, it would be 3.28% Pension included it is 0.34%
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swamp
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Post by swamp on Apr 20, 2011 19:57:17 GMT -5
5%
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Post by Savoir Faire-Demogague in NJ on Apr 20, 2011 20:41:36 GMT -5
I know everyone says this, but I feel like we've worked very hard to accumulate the $$ we have now and I don't want to lose it. I'll keep some of it in the market, but not all of it.
I'm with you. Unless you are invested at all times, using an allocation model suitable for you, you may not be in the market at the right time. Most gains in the markets take place on just a handful of days each year. Unless you are in on those days, you do not take part in those gains. I have data some where that lays this out with examples but it is not at my fingertips at the moment.
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Gardening Grandma
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Post by Gardening Grandma on Apr 20, 2011 20:56:39 GMT -5
I know everyone says this, but I feel like we've worked very hard to accumulate the $$ we have now and I don't want to lose it. I'll keep some of it in the market, but not all of it. I'm with you. Unless you are invested at all times, using an allocation model suitable for you, you may not be in the market at the right time. Most gains in the markets take place on just a handful of days each year. Unless you are in on those days, you do not take part in those gains. I have data some where that lays this out with examples but it is not at my fingertips at the moment. Most of our accounts are in "balanced funds". So only a percentage is in equities. The other percentage is in bonds. So when the market goes up, the balanced fund doesn't go up as much, but when the market goes down, the balanced fund doesn't go down as sharply either. It helps us sleep better at night - and the funds give us a dividend. So during 2008-2009, even though the total value of our account was down, we were still collecting (and reinvesting) dividends.
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lurkyloo
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Post by lurkyloo on Apr 20, 2011 23:14:49 GMT -5
Ugh, probably around 33%. In our defense, we are still planning a significant outlay in the near future...also, it's all DH's fault
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Deleted
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Post by Deleted on Apr 21, 2011 2:54:00 GMT -5
Until last month about 20% of our money was in cash. Then we (finally) moved about 8% into 3 different bond funds. Then we paid off a mortgage on a house we're going to retire to in about a year.
So about 5% now including EFs.
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schildi
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Post by schildi on Apr 21, 2011 2:55:21 GMT -5
about 10% for us.
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shandi76
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Post by shandi76 on Apr 21, 2011 6:36:23 GMT -5
Too much. Just under 30% (not including pension).
I need to keep it liquid just now because we might be making a major move in the next 6 - 12 months, and I have to get a couple of home repairs done before that.
I'm still socking large amounts of money into the market every month, but that is just from take home pay, not from savings.
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Deleted
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Post by Deleted on Apr 21, 2011 7:05:44 GMT -5
we are at about 6-8% cash.
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Regis
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Post by Regis on Apr 21, 2011 7:51:56 GMT -5
Between six and seven percent.
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jd2005
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Post by jd2005 on Apr 21, 2011 9:42:21 GMT -5
6% in cash (includes emergency fund).
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skweet
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Post by skweet on Apr 21, 2011 10:49:56 GMT -5
0.6% give or take
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tskeeter
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Post by tskeeter on Apr 21, 2011 11:02:25 GMT -5
Our cash hoard is way high right now to pay taxes on a Roth conversion. 2.4% of net worth. We usually keep the cash in the $10K - $15K range. Having two pay checks coming in reduces our need to have more significant cash reserves.
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sunuva
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Post by sunuva on Apr 21, 2011 11:19:09 GMT -5
We are self-directed in our retirement accounts. I intend to hold these a real long time, but even at that every single one of our individual stocks has a stop loss order.
Our other accounts are also self-directed and easily convertible to cash. So we don't keep anything in cash (miniscule amount equal to a fraction of a percent due to not being able to buy any sort of lot). However, if you take the value of our accounts (excluding retirement) according to every one of them being sold at a stop loss then we are sitting at 10.7% in cash. If we were to sell everything today (excluding retirement) then we would be at 28.6% cash (assuming that our being able to have cash in our accounts the moment we execute a trade is considered a cash-equivalent). We have a few IPOs and juniors for which being able to sell at a moment's notice isn't guaranteed - so I have those qualified as investments and not cash-equivalent investments, but also not retirement funds.
My prediction is that the companies that make up the S&P 500 today will not necessarily be the same 500 companies that make up the S&P in the future (same as they aren't the same as in the past). But simply looking at the companies of the S&P I have a lot of confidence in these companies as a group for continued strength in the face of a global economy. And viewing the S&P 500 as a measure of the health of the nation (I realize there are some foreign entities in that group but I surmise less than 20) I believe the United States as an economic force is still strong despite the financial woes affecting the country thrust upon it by the government. So, I firmly believe the stock market is going to go up.
Actually, it was reading these boards and forming opinions and arguments in answering a question pertaining to Index Funds that I realized that I should be jumping into a S&P Index fund. I don't remember the thread and I don't remember who first asked about it, but I do remember in thinking of a response that I realized I should have some money tied to an S&P Index Fund - that is how strongly I believe in the S&P 500 as a measure of the health of the stock market going up - and it took someone phrasing the question that way for me to come to that realization. (recognize that is only 500 companies of the thousands available).
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alabamagal
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Post by alabamagal on Apr 21, 2011 11:48:37 GMT -5
Definitely in the fractions of a percentage point. If I add up the change in my purse, I could give you exact number. The bank balance is low right now. Might be a lot higher tomorrow if I get my tax refund....
We are heavily invested in our business, probably about 60% of our net worth. Pension from previous employer probably another 25% Home maybe the other 15%
I am starting retirement savings via 401k with my new employer next month. We should be able to greatly increase savings once all three kids are through with college over the next 5 years.
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runewell
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Post by runewell on Apr 21, 2011 13:55:52 GMT -5
My net worth is 400K, my EF is 46K, and 3K of that is sitting as cash right now, the rest stays invested.
So <1%.
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midjd
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Post by midjd on Apr 21, 2011 14:26:35 GMT -5
Right now our NW is about ~35% home equity, ~55% investments, and 10% cash. Hope to get the cash % down once DH goes back to work... for now, it helps me sleep better at night
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Deleted
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Post by Deleted on Apr 21, 2011 14:27:08 GMT -5
My net worth is 400K, my EF is 46K, and 3K of that is sitting as cash right now, the rest stays invested. So <1%. What is your EF in?
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Deleted
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Post by Deleted on Apr 21, 2011 14:27:45 GMT -5
My net worth is 400K, my EF is 46K, and 3K of that is sitting as cash right now, the rest stays invested. So <1%. What is your EF in?
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runewell
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Post by runewell on Apr 21, 2011 14:45:29 GMT -5
My net worth is 400K, my EF is 46K, and 3K of that is sitting as cash right now, the rest stays invested. So <1%. What is your EF in? It varies, right now I think it is 1/2 emerging markets (VWO) and 1/2 small cap dividend (DGS). Before anyone goes off on the "you shouldn't invest your EF" tangent, I can afford to take some volatility and shrinking in this fund. If the market turns, I would certainly consider holding out a little while or putting it into something conservative. But with oil, gold, and silver going up right now my money is NOT staying in cash.
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thyme4change
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Post by thyme4change on Apr 21, 2011 14:49:06 GMT -5
Probably around 5%, maybe a little more. I can't remember if I have any money markets right now. I don't think so.
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runewell
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Post by runewell on Apr 21, 2011 14:49:33 GMT -5
I know it's an extreme result, but I changed my investments near the end of the 1st quarter and since 3/21 My EF is up from $43,118 to $46,887. If I had put it in a 1% CD I would be up to $43,154. Sure it could go back down, but a 1% return is losing money right now.
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formerexpat
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Post by formerexpat on Apr 21, 2011 15:18:33 GMT -5
I don't think this is extreme at all.
I try to keep my cash under 5%...right now, it's been tough because we've had some large purchases in the last year [home, finished basement, deck].
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runewell
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Post by runewell on Apr 21, 2011 15:24:55 GMT -5
I didn't mean <1% was extreme. What is extreme is the jump in my EF (well all accounts really) over the last month.
Having lots of cash reserves gives one options, including the ability to take a little more risk/reward.
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runewell
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Post by runewell on Apr 21, 2011 17:45:23 GMT -5
I don't get this: what does your asset allocation have to do with being in the market at the right time?
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