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It's always good to have something in cash. It's good for emergencies, or you use it to take advantage of extreme fear in the markets.
Each of us have a different situation, which induces a different strategy. I know this, the market is jittery due to the election. I wish I could state how the outcome of the election will affect the market, but I cannot. I still have a couple of small holdings, but currently I am over 90% cash until the dust settles after November 8th.
I am at 70% cash and will hold there until well after the election is over and the Fed's decide with what they want to do on the key interest rate. I think it is going to take multiple variables to make me move out of my present cash position.
I have been building cash for close to 6 years.. currently sitting around 25%.
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I am over 50% in cash/short term Cd's right now, but I am retired and 73 years old.
OK...i'll swallow my pride....i work at a hospital and have a 401k (hospital uses Prudential)...i can change investment elections and will check % returns occasionally and make changes...I am 57 so still got a few years to retire...i don't understand about "moving to cash" within my 401k...my inlaw said he moved his 401k to all cash..tired of the swings in the market...is that just selecting bonds within the plan and setting a % of the total into the bond funds?
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Originally Posted by swampshark
I think many people who have a 401K who say they went to cash, cash out their 401K. Which is usually a bad idea, especially with employer contributions. Or maybe they have an IRA where you can easily buy and sell, and let money just sit there. Bonds are not cash, there are risks.
nothing wrong with having a 3-6 month of your monthly income set aside, its maybe not making money but that is not the purpose. Get laid off a job tomorrow and have 6 months income saved you are in a great position. Its also a mental and emotional thing with this.
Usually the fixed income choices are "cash". You won't make much on them though.
NoCAL
I was 50% cash until today's purchases.......more like 40% now for a while. I'm 67. Generally prices are way over (19x) where many should be. I just take the advice of my trusted brokers.
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