I heard from a couple of colleagues that they like to keep about $10k or more in extra cash/savings for “downtimes” or “market corrections”. Example: March/April 2020, they invested $10k instead of the normal $1k that they normally would. Is this a mistake (waiting for a downturn)? Or is it better to increase the monthly dollar cost averaging amount invested and only keep in cash what you actually need in regular savings? Does keeping cash like that hurt you overtime (i.e opportunity cost of keeping cash)? Advice is appreciated! Also, side note, what is a healthy amount to keep in savings/cash for a rainy day (in terms of either salary or expenses) in your opinion?
Submitted February 08, 2021 at 11:38PM by Ghost7887 https://ift.tt/3a3VD2m
