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Reply to "How much in cash vs in the market"
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[quote=Anonymous]Is there a target percentage that you should have invested (meaning stocks or bonds) versus liquid (checking, savings, money market, and CDs which I consider liquid and hardly an investment as the rates are so low). Early 30s. Rent - no mortgage. Bad job stability right now. Separate 401k. I know I keep too much in the bank but I was speaking to a friend in a similar position and she says she keeps only 2 yrs living expenses on hand and everything else is in the market. That seemed excessive to me. Problem for me is - I don't know when I'll need the money -- ie I don't know when I'll buy a house, switch jobs etc so I never know whether I should only put in the market the money that I won't touch for decades or if there is some other way. I know investing in the market and long horizons are what lead to growth so I don't want to be someone who invests nothing and then regrets it in 10 yrs.[/quote]
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