How To Balance Savings In Cash vs. Investments

[@neilcook1652]

Excellent overview, that’s appropriate to both me as a 59 year old and my 26 year old son, thank you

[@dforrest4503]

You do such a good job explaining things. I’ve never heard of a sinking fund before, but that’s exactly what I do for things like property taxes, putting money in my Roth IRA, insurance, etc.

[@daveschmarder-1950]

You are right about the sinking fund, James. Nearly 40 years ago I had a low income friend that was always struggling to pay his school and property taxes. When the bill came, he struggled. I told him to put a little away each month for this expense. I told him that while he didn't know exactly how much it was, he knew about what it would be. He tried it and he was much happier. I also got him to get on the even monthly payments for electric and gas. That helped too during the winter.

[@lucasdurham6830]

You made a lot of great points, i feel that an emergency fund or substantial cash position can allow you to really g on offense financially speaking. Take some higher risks and pursue opportunities due to a high level of liquidity, not to mention the great flexibility it offers.

[@MrGoodaches]

Of course I was hoping to have picked up a math rule to calculate some golden rule amount. But I’m content enough to have heard Mr Conole’s clearly stated summary of the various subjective factors. Not hearing anything that I’ve failed to consider I’ll use this as positive reinforcement that I’m OK with my “cash” and move along to other topics that maybe are a hidden bigger issue fo4 me.

[@khoasterful]

For me, I keep ONE general cash fund that has multiple purposes, some of which is mentioned in this video (insurance policy, emergencies, monthly expenses, etc). The funding amount should vary. For me, it's 10-20% of total portfolio works well. Having a healthy cash fund also allow opportunity purchases of securities when market is down/fire sale, using dollar cost averaging method, AND releasing them when market recovers. Don't get greedy and keep them long term, unless your cash fund is restored by other means. The trick here is that you have to be very disciplined not to over extend your purchases and know when to convert them back to cash.

[@erinaustin9968]

What if you are retired? How much cash should you have? Three years of expenses?

[@chuckcimo1756]

I enjoy watching your informational videos and picking up tips. Off the subject but, have you ever done a video on reverse mortgages? There's a lot of info out there about advantages and pitfalls. I plan on retiring from teaching the summer of '23 (I'll be 63) and my mortgage will be paid off a few months before that. Never been married and have no kids so I don't really have anyone to leave my assets to. (House is worth roughly $175K) What's your opinion/advice in general for the public? Tap into the equity, let it ride, or something else? Thanks.

[@KatieLibby1315]

Wouldn't I Bonds be a good investment for short-term savings (not emergency)?

[@jwall62]

Depends on what short term means, and you;re limited to $10k per year per family member. Need to hold it for 12 months at least and the interest rate changes every 6 months.

[@mikeflair6800]

I believe you are too conservative and suggest planning for things that may have a low probability of actually happening. Cash is not really an asset, it is a utility i.e. to settle your monthly bills. Cash pays no dividends. Cash loses to inflation. You may think I am too aggressive, but I suggest keep ALL money invested, at all times, and keep earning dividends. Take out the cash when you need it...be more a self funder. Overtime, cash is much more risky than stocks.

[@dale9484]

Can you do a video on purchasing physical gold vs. purchasing gold through an exchange, GLDX, and overall how to purchase gold.

[@TheAndrewLopezFinancePodcast]

But James, STONKS only go up!

[@Abraham.Lincoln22]

Great job.

[@Abraham.Lincoln22]

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