05-18-2015, 01:38 AM
I feel your pain guys. It simply feels horrible to have large amounts of cash. Having all that money sit in an account gathering a ridiculously low interest rate compared to having it in the market bringing in a decend dividend yield... just feels like wasted money.
If you have no short term needs for the money and you are willing to use some leverage to buy the dips, then I wouldn't necessarily see a need for keeping any cash for investments needs.
Only reason my cash balance is big is, like I said, I plan on buying a house/apartment sometime in the next few years and I do not plan on selling any shares to finance it. If the market wouldn't be so highly valued I wouldn't mind investing a bit of that cash but at the current levels I feel like it's too risky. As my plans for the next couple of years have become more and more clear I'm looking to park a part of that cash into bonds with maturities in the next few years. This way I will get the capital back before I need it and get to enjoy some higher income than I would from a simple cash account.
If you have no short term needs for the money and you are willing to use some leverage to buy the dips, then I wouldn't necessarily see a need for keeping any cash for investments needs.
Only reason my cash balance is big is, like I said, I plan on buying a house/apartment sometime in the next few years and I do not plan on selling any shares to finance it. If the market wouldn't be so highly valued I wouldn't mind investing a bit of that cash but at the current levels I feel like it's too risky. As my plans for the next couple of years have become more and more clear I'm looking to park a part of that cash into bonds with maturities in the next few years. This way I will get the capital back before I need it and get to enjoy some higher income than I would from a simple cash account.