abenjami Posted July 27, 2016 Author Report Share Posted July 27, 2016 3 hours ago, OILERMAN said: First of all let me remind you just liquidated your portfolio and are now holding what is I hope for your sake is a large amount of cash. If you're waiting for the market to go below 17k you could hold it for a while. Holding cash in lieu of investing is pure stupidity, unless the person has massive amounts of cash and has already won the game. The Reddit article posted by NN from the estate lawyer concerning winning the lotto actually advised to keep 35 mill in cash of the from the 100 mill. I realize this is an extreme case as you mentioned but it works the same on a smaller scale. If I had 100 mill I wouldn't keep 35 mill in cash myself. Cash equals opportunity. I had too much cash earlier this year and invested a big chunk of it when the market was lower. I have since inherited some money and am once again waiting for an opportunity. I was hoping Brexit would take the market down, not below 17,000 but way down. 11-12k was my hope. If you're going to be 100% in equities then cash is a good way to offset it in retirement. I will have 2-3 years on income expenses in cash when I stop working so I can supplement my investment income, re-invest dividends and fund myself through market crashes without touching principal. Lots of financial planners recommend this strategy. Interest rates are close to 0 and my money market account with my credit union actually pays a high rate considering the climate. Me and my wife both work a ton of OT and invest all of it plus a large % of our base salaries, we're 100% debt free. I probably invest monthly more than someone making 5-10 times our annual salary. A large cash holding is fine in my opinion. Now I know people who have 5-10% of their salaries automatically taken out of their checks and invested into cash(government bonds) in my plan. They won't get compound interest and won't beat inflation. In this case I'd agree with you, pure stupidity. First off, let's be sure we are talking about the same thing. I am talking about holding straight cash. Not holding cash in an account that earns a 1-2%, stashing it away in government bonds for awhile, or holding it somewhere that people often refer to as a "cash equivalent". Just actual cash. I am also only talking about holding straight cash for a significant period of time. I have no problem with holding cash for a week or even a month. Sometimes it is necessary when moving between investments or for timing purposes. I am talking about holding straight cash for months or years. I am also only talking about holding a significant amount of cash. Having a little bit of cash or play money is not stupidity. I have not liquidated my portfolio yet but if you read this entire thread, you will see I mentioned that I am trying to figure out where to park my cash to earn something in case the market dip takes longer than I expect. Even if a person has 100 million and has "won the game" it is still pure stupidity to hold a large amount of straight cash. If you have 100 million USD, you should be diversifying by parking chunks of that money in foreign countries. If you want to be risk averse, you should still be parking it in government bonds, CD's, or something else safe to earn something. This is true even if what you earn doesn't end up covering inflation, as earning something is much better than earning nothing. Link to post Share on other sites More sharing options...
OILERMAN Posted July 27, 2016 Report Share Posted July 27, 2016 We're pretty much on the same page However the US is safer than any other country Link to post Share on other sites More sharing options...
IsntLifeFunny Posted July 27, 2016 Report Share Posted July 27, 2016 Just now, OILERMAN said: We're pretty much on the same page However the US is safer than any other country I think England is a close second after Brexit. The way their market rebounded while the EU's faltered really did a number on the whole liberal (classical) model. They've essentially insulated themselves and regained their stronghold on their status as the top financial market in the world. Link to post Share on other sites More sharing options...
abenjami Posted July 27, 2016 Author Report Share Posted July 27, 2016 1 minute ago, IsntLifeFunny said: I think England is a close second after Brexit. The way their market rebounded while the EU's faltered really did a number on the whole liberal (classical) model. They've essentially insulated themselves and regained their stronghold on their status as the top financial market in the world. Agree 100% the US is safer than any other country. But if you have millions, the US going down is the only thing that ruins you, and you have to diversify abroad even though the risk of it happening is small. Link to post Share on other sites More sharing options...
SleepingTitan Posted July 27, 2016 Report Share Posted July 27, 2016 On 7/25/2016 at 11:12 AM, abenjami said: This is what I am trying to figure out. Where can I park my cash that is low risk, immediately liquid, but also completely untied from the market? Untied? Everything is tied lol. Pick 5-10 very solid dividend paying stocks and let it ride. I feel like you can't go wrong with solid balance sheet stocks that have high revenue AND innovation. Google it. Google Amazon Samsung Apple Verizon You could literally choose these, throw in a pharma stock and be done with it. Maybe PG&E too. No matter what happens, people will not stop spending at these companies. Link to post Share on other sites More sharing options...
Cyrus Posted July 27, 2016 Report Share Posted July 27, 2016 Google and Amazon don't pay a dividend. Samsung's dividend yield is .72% from what I can find. Apple yields around 2.2% Link to post Share on other sites More sharing options...
freakingeek Posted July 27, 2016 Report Share Posted July 27, 2016 22 hours ago, abenjami said: Holding large amounts of actual cash is pure stupidity. The guy just retired this year. Him and his wife are pretty self sufficient. Large farm that is paid for. They grow a large garden. She still works and gives horse riding lessons. He gives guitar lessons. Gets paid cash. Doesn't want to risk losing money after retirement and doesn't trust the market. He's pretty tight but I don't have any idea what their nest egg is. I don't know if their cash is in a money market or buried in a lockbox. Link to post Share on other sites More sharing options...
OILERMAN Posted July 29, 2016 Report Share Posted July 29, 2016 Have you liquidated yet? Link to post Share on other sites More sharing options...
abenjami Posted July 29, 2016 Author Report Share Posted July 29, 2016 21 minutes ago, OILERMAN said: Have you liquidated yet? Partially. I sold my QQQ and managed futures fund. I'm about to sell my Euro growth fund. Have not sold SPY and some others yet. Still deciding if I want to go all in or not. Link to post Share on other sites More sharing options...
OILERMAN Posted July 30, 2016 Report Share Posted July 30, 2016 11 minutes ago, abenjami said: Partially. I sold my QQQ and managed futures fund. I'm about to sell my Euro growth fund. Have not sold SPY and some others yet. Still deciding if I want to go all in or not. How many different positions do you own overall? Link to post Share on other sites More sharing options...
abenjami Posted July 30, 2016 Author Report Share Posted July 30, 2016 1 hour ago, OILERMAN said: How many different positions do you own overall? 8 at the moment. Link to post Share on other sites More sharing options...
abenjami Posted August 2, 2016 Author Report Share Posted August 2, 2016 Update - 1 Link to post Share on other sites More sharing options...
Number9 Posted August 2, 2016 Report Share Posted August 2, 2016 https://www.yahoo.com/news/chip-credit-card-may-want-182436038.html If anybody thinks this needs it's own thread, do it. They continue to pass laws in the do nothing congress that screw US(United States). The new smart chip is safer for the card issuers. Yes. If you swipe the card instead of using the chip, then you are responsible for any fraud. Wait just a &#!%+$# minute!! Link to post Share on other sites More sharing options...
OILERMAN Posted August 2, 2016 Report Share Posted August 2, 2016 2 hours ago, abenjami said: Update - 1 Did you liquidate completely? Link to post Share on other sites More sharing options...
9 Nines Posted August 2, 2016 Report Share Posted August 2, 2016 (edited) 2 hours ago, Number9 said: https://www.yahoo.com/news/chip-credit-card-may-want-182436038.html If anybody thinks this needs it's own thread, do it. They continue to pass laws in the do nothing congress that screw US(United States). The new smart chip is safer for the card issuers. Yes. If you swipe the card instead of using the chip, then you are responsible for any fraud. Wait just a &#!%+$# minute!! This is false. I have seen these reports for the last few months. I am not sure if the authors are dunce or if they have an agenda (of the articles I read previously, they all lead back to once source - some credit monitoring outfit.) Per the Fair Lending Act, you are only responsible for $50 for fraudulent use of a credit card and most banks will waive that per policy. I read a white paper on this and talk to my credit card company about it to confirm the situation. The liability that changed because of the chip is between the card issuing company and the merchants per the Merchant Agreements between the credit card clearing companies (Visa, Mastercard, American Express, Discover etc.) and merchants who accept them . What changed: If chip machine is used, then the issuing company covers the fraud and pays the merchant (banks loss.) If a non-chip machine is used on a chip card, the issuing company will not cover the merchant (merchant's loss.) Articles, like the one your quoted, are becoming so widespread, it looks like the card issuing companies would come out with an official response to clear it up. Since they are not, it makes me wonder too but I am fairly confident in what I have found (paraphrased above) and I do not see how they could hold card holders liable based on the Fair Lending Act protecting consumers from fraud liability. Edited August 2, 2016 by 9 Nines Number9 1 Link to post Share on other sites More sharing options...
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