How much cash should I keep in my portfolio

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03-06-2023, 08:02 PM
Valuegrowth

How much cash should I keep in my portfolio

Hi Eeverybody

I thought to find out how much people are keeping cash in their portfolio and where they holding cash. I heard fund managers are still holding higher than usual-cash-stakes and plenty of fund managers are continue to play defense.

I have also heard we should keep some cash for emergency expenses.

We all have differences such as age, portfolio and trading or investment styles.

In my case, I'm couple of years away from retirement. Curently, my Kiwi-saver is in 100% cash fund.

Thank you in advance for your valuable thoughts.
03-06-2023, 10:51 PM
SBQ

Personally for the past 2 years i've allocated 1/3rd of my total portfolio wealth into playing options. But so far 2023 is looking to be the most hated year by those that have been sitting on the sidelines with cash. Buffet knows himself that you're always better to put your cash to work in good times and in bad times. The problem is most people holding cash will usually miss out on valuable gains. One should be thinking contrarian and that is be moving cash into markets now before interest rates starts coming down and inflation figures abate.
04-06-2023, 12:54 PM
Valuegrowth

SBQ

I think even WB raise cash when he see extended value in stocks and then keep them until he find good investments. If I am correct,this time Berkshire have posted $35.5 B profits. But they have sold over $13 B in stocks.

https://money.usnews.com/investing/s...tt-just-bought

https://finance.yahoo.com/news/warre...092800591.html

https://edition.cnn.com/2023/05/16/i...%20term%20bets.
05-06-2023, 07:51 PM
JBmurc

Quote:

Originally Posted by Valuegrowth

Hi Eeverybody

I thought to find out how much people are keeping cash in their portfolio and where they holding cash. I heard fund managers are still holding higher than usual-cash-stakes and plenty of fund managers are continue to play defense.

I have also heard we should keep some cash for emergency expenses.

We all have differences such as age, portfolio and trading or investment styles.

In my case, I'm couple of years away from retirement. Curently, my Kiwi-saver is in 100% cash fund.

Thank you in advance for your valuable thoughts.

I've been terrible at keeping cash on the sidelines ... I'm the burn the hole in the pocket kind of guy ..can't stand not being 100% invested ... of course sometimes that investment will be in a Market Short ETF .
05-06-2023, 08:03 PM
stoploss

Quote:

Originally Posted by Valuegrowth

Hi Eeverybody

I thought to find out how much people are keeping cash in their portfolio and where they holding cash. I heard fund managers are still holding higher than usual-cash-stakes and plenty of fund managers are continue to play defense.

I have also heard we should keep some cash for emergency expenses.

We all have differences such as age, portfolio and trading or investment styles.

In my case, I'm couple of years away from retirement. Curently, my Kiwi-saver is in 100% cash fund.

Thank you in advance for your valuable thoughts.

Just wondering why you have your Kiwisaver in 100 % cash ? Are you taking it all out the day you turn 65 to pay the mortgage ?
If you are going to live till the average age , this sum if it sits in cash is going to get eroded by inflation pretty quickly .....
05-06-2023, 08:15 PM
Valuegrowth

These days I am experimenting some different things that I never did. Today, I shorted some tech stocks using an ETF listed in Au.

Quote:

Originally Posted by JBmurc

I've been terrible at keeping cash on the sidelines ... I'm the burn the hole in the pocket kind of guy ..can't stand not being 100% invested ... of course sometimes that investment will be in a Market Short ETF .
05-06-2023, 08:21 PM
Valuegrowth

As markets were hot over the last couple of years, I decided to keep it in 100% cash. One option is paying off part of morgage as soon as I turn 65. The second option is invest half of it in the stock market and make use of balance amount to pay off some morgage.

Quote:

Originally Posted by stoploss

Just wondering why you have your Kiwisaver in 100 % cash ? Are you taking it all out the day you turn 65 to pay the mortgage ?
If you are going to live till the average age , this sum if it sits in cash is going to get eroded by inflation pretty quickly .....
05-06-2023, 09:11 PM
stoploss

Quote:

Originally Posted by Valuegrowth

As markets were hot over the last couple of years, I decided to keep it in 100% cash. One option is paying off part of morgage as soon as I turn 65. The second option is invest half of it in the stock market and make use of balance amount to pay off some morgage.

You could go 50 % cash fund so you have the mortgage option and 50 % Growth now which would be the same as investing it back in the market when you turn 65.
05-06-2023, 09:21 PM
Valuegrowth

Thank you. Which kiwi saver provider will allow me to do like that?

Quote:

Originally Posted by stoploss

You could go 50 % cash fund so you have the mortgage option and 50 % Growth now which would be the same as investing it back in the market when you turn 65.
05-06-2023, 09:47 PM
stoploss

Quote:

Originally Posted by Valuegrowth

Thank you. Which kiwi saver provider will allow me to do like that?

Most should allow a split . However I do know Generate Kiwisaver allows you to split your funds into whatever % allocation you want to across their KiwiSaver funds.
https://www.generatewealth.co.nz/
Not advice, do your own research.
07-06-2023, 07:18 AM
Daytr

I have my Kiwi Saver in cash as well. 5% plus return isn't bad short term in the current environment. I have already made 11% in the first 3 months of the year before switching. With all the gyrations around the world with the global reset on interest rates I am sitting, waiting for s pullback. My downside or lost opportunity is probably very little.

I also trade other money so it's not like I'm not exposed to the market and holding money back looking for opportunities. Too many times I have been over invested and missed out on huge opportunities of buying in after massive pullbacks.
07-06-2023, 07:17 PM
Valuegrowth

I have experience in all settings. People have urgent needs. In two occasions, I was in real trouble by not keeping some cash. Long term investment is not an easy task. For me to consider long term investment, at least I should have some knowledge about the industry and companies that I am going to invest. Once I follow nearly 10 to 15 years on any industry or commodity, then I am comfortable with taking positions on them. Also if we pick 5 stocks, we aren't going to get same return from all stocks.