02-04-2020, 05:22 PM
(This post was last modified: 02-04-2020, 05:24 PM by Dividend Watcher.)
Otter & Fenders pretty much said it. No gold for me and bonds are generally out until we can get back to a real return on the 2-10 year spectrum. As I accumulate cash, I'll probably go Fenders route with the ultra-short term just to juice the yield a little.
Right now I'm at less than 1% cash in both my wife's and my IRAs. The 401(k) is about 4% cash but that's a small balance since I just started with this company about 4 years ago. I wouldn't recommend going that low in cash if you're just starting. The majority of my holdings are over 10 years old and I'm only adding in small bits with DRIPs and when something sells off because of short-term bad news. I'm primarily buy and hold but when something doesn't make sense with a company's future market or management, I'll dump it. That generally is only one or two companies every year or so. I recently had to trim MSFT just a tiny bit because it had become such a big portion of the portfolio. I swapped the proceeds for some higher yielding companies since we're only a few years to retirement.
Right now I'm at less than 1% cash in both my wife's and my IRAs. The 401(k) is about 4% cash but that's a small balance since I just started with this company about 4 years ago. I wouldn't recommend going that low in cash if you're just starting. The majority of my holdings are over 10 years old and I'm only adding in small bits with DRIPs and when something sells off because of short-term bad news. I'm primarily buy and hold but when something doesn't make sense with a company's future market or management, I'll dump it. That generally is only one or two companies every year or so. I recently had to trim MSFT just a tiny bit because it had become such a big portion of the portfolio. I swapped the proceeds for some higher yielding companies since we're only a few years to retirement.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan