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Let's Crowdsource: How Much Cash Should You Hold?

The conventional wisdom is that you don't want to hold too much cash, it's actually a great problem to have but can lead to stress or making hasty decisions

Introduction

If you are reading this article, you are probably already managing your portfolio. Everyone talks about the balance of stocks and bonds but cash allocation is often times a byproduct of other allocations and not an actual decision being made.

The conventional wisdom is that you don't want to hold too much cash, it's actually a great problem to have but can lead to stress or making hasty decisions. There are opportunity costs of holding cash so where should your target be?

I'd like to do a crowdsourced interview with the community here to see if it's possible to come to a few meaningful conclusions.

What's great about this community is that there are many investor styles present here: dividend growth, total return, options, ETFs, real estate, precious metals, the list goes on and on! There is also an enormous range of both age and investing expertise. I have

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