I recognize that this is a very basic question, but as a relatively new member here, I see that it varies GREATLY!
And for those investors who carry a lot of cash, counting it or not counting it in your AA makes a BIG difference in your "actual" AA.
Some posters actually list the cash allocation...i.e. 60/30/10. That makes it very clear. But when someone says "I'm 70/30", does that generally mean that their cash position is immaterial, or are they are including their cash in their Bond allocation, or do they have a ton of cash and are not considering it at all, thus greatly misrepresenting their true "total" portfolio ratios?
Here at Bogleheads, something as simple as a statement about your AA, may not be simple or straightforward at all.
And why I think this matters, is because many, including me, come here to see real-life decisions of people who are in similar situations as them. That is hard to do without understanding how cash fits into a person's true portfolio position and ratios.
Thoughts?
And for those investors who carry a lot of cash, counting it or not counting it in your AA makes a BIG difference in your "actual" AA.
Some posters actually list the cash allocation...i.e. 60/30/10. That makes it very clear. But when someone says "I'm 70/30", does that generally mean that their cash position is immaterial, or are they are including their cash in their Bond allocation, or do they have a ton of cash and are not considering it at all, thus greatly misrepresenting their true "total" portfolio ratios?
Here at Bogleheads, something as simple as a statement about your AA, may not be simple or straightforward at all.
And why I think this matters, is because many, including me, come here to see real-life decisions of people who are in similar situations as them. That is hard to do without understanding how cash fits into a person's true portfolio position and ratios.
Thoughts?
Statistics: Posted by Kistle — Tue Jun 25, 2024 7:27 pm — Replies 18 — Views 722