Caporegime
- Joined
- 21 Jun 2006
- Posts
- 38,367
(Blatant diversion alert!)
You are very much mistaken. It just depends how much cash and how much of your portfolio it is. You've got to look at the larger picture. For someone worth £10M, £100K in cash is 1% - very much working capital. For someone dependent upon investment income (shares, property, etc) then a large float (say equal to their annual expenditure) allows them to survive times of low income without selling capital.
Some cash is good; having £millions in cash permanently is not so good.
If you vary your portfolio enough you should have enough cash to cover you for a few days and be able to cash out enough to cover you for several months within a week.
I cashed out several thousand on vanguard the other week my first time doing so and was surprised at how long it took. 4 days in total.
Whereas crypto I can have in my bank account within 5 minutes and that's with going through an intermediary bank account as well.
Gold again I have a cash dealer. I can simply walk into his shop 6 days a week and walk out with cash.
Property rental income is cash anyway in the bank.
I only keep enough liquid cash in these times for buying dips or immediate expenses.
Credit cards 0% interest, PayPal credit, etc is all available and can just be offset against next month's DCA buys. So money goes towards them instead of regular top ups.