@Penn
I Bonds have the $10k limit. You can go a bit over that if you use your tax return.
@Penn
Yep, sounds like you’re thinking of I Bonds.
I keep around 6 months’ worth in a high-yield savings, the rest is invested. It’s not about a %; it’s about knowing I have a fallback. Set up the safety net first, then invest what’s left. The idea is to avoid pulling from investments when something comes up.
Just 10% of my stock portfolio, specifically.
Percentages are tricky. I look at how many months of expenses I have in cash instead.
Cash needs have really come down over the years since ETFs and other assets settle almost instantly now.
The standard used to be having liquid assets within 3 days, but now with equities settling ‘tomorrow,’ you’re mostly only looking at insurance or REITs that take longer. Holding an emergency fund in a total market mutual fund is probably fine.
I don’t think of it as a %. It’s more like 3, 6, or 12 months of living expenses depending on your needs. But if you have a big purchase coming up, keeping more cash could be wise.
For me, it’s 10% cash, 20% bonds, and 70% equities. I’m mid-40s, planning to work another 5-10 years. I wish I’d been more in equities these past few years, but that’s hindsight.
No net worth yet, so 0.
The older I get, the more I like having liquid cash. Right now, it’s about 15% so I can take advantage of opportunities.
About one month’s worth of expenses in easy-access accounts, and three months in accounts with some withdrawal penalties. Everything else is investments—some in global equity ETFs and a few higher-risk plays.
@Vega
Over time, as I build my portfolio, I’ll probably want to keep closer to 12 months’ expenses in cash.
Our net worth is around 2 million. We just keep enough cash for the monthly credit card and about $1k extra. We both work in different industries, have a paid-off house, and only need about $1k monthly for bills. Dividend income helps too, and we could cut back on luxuries if needed.
I’m the main earner for my family of four, working in tech sales, so I keep about 10 months of expenses in a high-yield savings account. It’s more than I’d like, but it helps me sleep better.
I keep around 6 months’ expenses for emergencies and some short-term savings, so that’s about 3-4% of my total portfolio.
About 5% of my investments are in cash, mostly CDs and bonds, with $10k in a savings account as emergency cash.
5-6% right now, holding a bit more as I plan to retire next year.
My split is 70% in stocks, 25% in bonds, and 5% in cash.
About 15% or so.
I keep around 3 months of expenses in a high-yield savings account, and as my net worth grows, the % of cash decreases, but it’s the same dollar amount.