05-18-2015, 09:37 AM
(05-16-2015, 10:13 AM)rayray Wrote: I'm not thinking about cash for a rainy day, I'm thinking about the cash reserves used for a dip purchase.
(05-16-2015, 12:47 PM)crimsonghost747 Wrote: 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.
I'm with crimson here, I like keeping a big pile of cash handy, and am comfortable using it for various purposes. Philosophically, it is primarily my rainy day fund. But I am more than happy to raid it to take advantage of a nice opportunity in the market. If I do that, I'll take care to replenish the fund going forward.
(05-17-2015, 05:23 PM)earthtodan Wrote: Conclusion: Investing will drive you crazy.
Lol.
(05-18-2015, 01:38 AM)crimsonghost747 Wrote: 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.
I disagree on this one -- cash is king! Having a large pile of cash makes me feel so warm and happy! I understand the arguments in favor of staying fully invested (or nearly so), but my temperament dictates otherwise. (I think the very first rule of investing is "know thyself"!)