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I believe people spend more time investigating what car to buy than taking care of their personal finances. 35 years ago I decided to learn how to manage, invest and grow my savings. I decided to become fully informed. I built this site to share my strategies and investments. To understand my strategies Continue Reading >>

I am often asked about the cash portion of my entire portfolio. As regular readers know my strategy for my entire portfolio is 40% in stocks, 30% in bonds and 30% in cash.

The cash portion of my portfolio spends most days resting comfortably in an investment account which since the financial crisis of 2008 to 2009 has been earning about 1% annually. While this seems like such a small amount my cash is actually not idle but busy every single day so a 1% return is not goal.

There are three key aspects to my cash portfolio and how it is being used every day. The value of keeping cash at the ready is an important aspect of becoming a consistently successful investor. Cash provides flexibility and while the old saying of “Cash Is King” certainly does hold true, it is just as true that using cash properly can assist investors in reaching their goal of compounding their portfolio and growing their capital. Like everything in my portfolio, there is a strategy being used even for my cash.

This is a Fullyinformed Members Article which is part of the series on How To Become A Better Investor.

This FullyInformed Members Article can be directly accessed through this link or Members can login here. Non-members can join here.

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Disclaimer: There are risks involved in all investment strategies and investors can and do lose money. Trade at your own risk.

Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author's ideas and opinions only and the author assumes no liability for topics, ideas, errors, omissions, ads and their content and external links. Fullyinformed.com is a private website. . By using this site, you agree to be bound by its terms of use which you can read here. The Privacy Policy Is Here If you do not agree to the terms of use, do not use this site. Any corporate insignia used are registered trademarks of their respective company or corporation and are used for identification purposes only. All material copyrighted by FullyInformed.com © 2006 -2013
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