05-16-2015, 12:47 PM
I have a cash account that serves as rainy day fund / saving for downpayment for house / cash reserve for dips. All those 3 put into one as I feel comfortable using this cash for any of the 3 activities mentioned above. It's got quite a lot of cash mainly since I think buying a house could be in the plans during the next 5 years. I am not ready to withdraw everything and throw it into stocks but I can do that with quite a large percentage if the dip is strong enough.
So lots of dry powder ready if necessary, but it's not sitting there for the sole purpose of being used on the stock market.
Also IB offers margin (up to 50% of portfolio's value) for a very good % so that can also serve as ammo if necessary.
So lots of dry powder ready if necessary, but it's not sitting there for the sole purpose of being used on the stock market.
Also IB offers margin (up to 50% of portfolio's value) for a very good % so that can also serve as ammo if necessary.