I was just going to ask you the same cash question...

2009-04-10T11:11:00.000-04:00

I was just going to ask you the same cash question but you just cleared it up in the comments. Like the portfolio though, good luck!

That one's easy and I should have explained that b...

2009-04-06T08:34:00.000-04:00

That one's easy and I should have explained that better in the post.

Cash represents what I have in a high interest savings account for the downpayment of a home within the next 12 months. I keep it separate from my invested assets, but consider it in the overall portfolio because I would have access to it for investment purposes if I decided I didn't need a home.

Basically the leverage I use (margin) is for my long-term investments and cash is for my short-term (housing). I considered using the cash for further investing, but at my current cost of capital I felt that having something separate from my equities was important for the short-term purchases I will need to make over the next 12-24 months (house, wedding, new car, etc).

The cost is one of peace of mind in my case knowing that if I decide to move on a home in the short-term I have the funds available for 20% down plus closing costs without having to sell assets.

Hi Brad,

I'm curious as to why you have a c...

2009-04-06T07:51:00.000-04:00

Hi Brad,

I'm curious as to why you have a cash allocation when you are currently on margin? They cancel each other out, yet there is a net interest expense to you to do things in this way.

Comments on Triaging My Way To Financial Success: Value Update II, 2009:

I was just going to ask you the same cash question...

That one's easy and I should have explained that b...

Hi Brad,I'm curious as to why you have a c...

Hi Brad,

I'm curious as to why you have a c...