Comments on: Cash Is a Strategic Asset Class http://outofyourrut.com/blog/2009/07/21/cash-is-a-strategic-asset-class/ Careers, Business Ideas, Money and More Fri, 10 Feb 2012 14:34:14 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Stock Volatility Kills & Seven Other Guest Blog Entries on Valuation-Informed Indexing | A Rich Life http://outofyourrut.com/blog/2009/07/21/cash-is-a-strategic-asset-class/#comment-9214 Stock Volatility Kills & Seven Other Guest Blog Entries on Valuation-Informed Indexing | A Rich Life Thu, 27 May 2010 12:18:49 +0000 http://outofyourrut.com/blog/?p=113#comment-9214 [...] Cash Is a Strategic Asset Class, at the Out of Your Rut [...] [...] Cash Is a Strategic Asset Class, at the Out of Your Rut [...]

]]> By: Kevin M http://outofyourrut.com/blog/2009/07/21/cash-is-a-strategic-asset-class/#comment-33 Kevin M Wed, 22 Jul 2009 02:53:34 +0000 http://outofyourrut.com/blog/?p=113#comment-33 Rich--Not many people think of it in the way you've laid it out, but you make a strong point. You can bet a lot of stock market investors were wishing they did something similar a couple of years back when the market was hovering around all time highs, just before the plunge. When Rob ran the idea of this post by me I really hesitated because of the investment orientation, but his advice was solid for anyone with the financial markets being as volatile as they have been. comment by Kevin (admin) Tuesday, July 28, 2009 @ 12:26:02 PM Rich–Not many people think of it in the way you’ve laid it out, but you make a strong point. You can bet a lot of stock market investors were wishing they did something similar a couple of years back when the market was hovering around all time highs, just before the plunge.

When Rob ran the idea of this post by me I really hesitated because of the investment orientation, but his advice was solid for anyone with the financial markets being as volatile as they have been.
comment by Kevin (admin)
Tuesday, July 28, 2009 @ 12:26:02 PM

]]> By: RB http://outofyourrut.com/blog/2009/07/21/cash-is-a-strategic-asset-class/#comment-56 RB Tue, 21 Jul 2009 21:28:33 +0000 http://outofyourrut.com/blog/?p=113#comment-56 The majority of my liquid assets is in cash (70%) making 4.2% / annum. It’s nothing sexy, but I’ve built THE NUT already so even at 4.2%, I’m earning over 20K/yr in interest income. I’m happy with that guaranteed income, and am excited to continuously add to it for the next 8-10 years. I don’t want to put more money in the stock market b/c I believe that’s what my 401k is for. If you’ve worked for 10 years, you may have probably 150-200K in your 401k given the 15K/yr contribution, dividends, + employer contribution an profit sharing. And that is post correction. Hence, to add another several hundred thousand to the stock market just doesn’t seem prudent. Once the cash nut is built, it’s good enough. Imagine having $1billion in the bankin…. earning $40mil/yr in interest income is good enuf! Rgds, RB comment by RB @ RichBy30Retireby40 Tuesday, July 21, 2009 @ 7:25:43 AM http://www.richby30retireby40.com/ The majority of my liquid assets is in cash (70%) making 4.2% / annum. It’s nothing sexy, but I’ve built THE NUT already so even at 4.2%, I’m earning over 20K/yr in interest income. I’m happy with that guaranteed income, and am excited to continuously add to it for the next 8-10 years.

I don’t want to put more money in the stock market b/c I believe that’s what my 401k is for. If you’ve worked for 10 years, you may have probably 150-200K in your 401k given the 15K/yr contribution, dividends, + employer contribution an profit sharing. And that is post correction. Hence, to add another several hundred thousand to the stock market just doesn’t seem prudent.

Once the cash nut is built, it’s good enough. Imagine having $1billion in the bankin…. earning $40mil/yr in interest income is good enuf!

Rgds,

RB
comment by RB @ RichBy30Retireby40
Tuesday, July 21, 2009 @ 7:25:43 AM
http://www.richby30retireby40.com/

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