I’d be interested to hear peoples’ thoughts on cash and its place in your portfolio and overall investment plan.
In particular…
* What percentage of your portfolio is cash?
* Where do you park your cash?
* What return do you earn on it?
* What are your investment rules in relation to cash?
Some positives of having cash that I can think of are…
* Gives you the ability to buy when an opportunity arises.
* A safety cushion.
* Peace of mind.
Negatives
* By the time you factor in inflation and tax, your returns are tiny or negative.
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