Quote:
Originally Posted by detroitm2
People have way too much cash on hand.. It's not doing you any good sitting in saving. LOL I generally keep at least 10K in savings. everything else is in long/short term investments.
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I would imagine most that have $100K in "cash" likely have $1M+ in investments, excluding their home. It's all relative and your risk tolerance. I'm fine with the income/growth of my investments and my "cash" does generate some income as well. Being able to access that cash and without taxation/penalty within 24 hours is a huge plus too. For me, $10K wouldn't cut it. My CC bills are can vary from $5K to 12K/mo depending on what we buy, home repair, work and/or leisure travel, rare big purchases, etc. Having to sell a short-term investment would be a pain. Then I have to deal with it at tax season as well. I'm also not a huge fan of short-term investments. Too volatile. Too time consuming to deal with.