SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Dividend Growth Investing and chit chat.
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: LegitDGIguy who wrote (1430)12/6/2021 5:43:24 AM
From: cemanuel3 Recommendations

Recommended By
DaveVK
LegitDGIguy
onlywords

   of 2146
 
"How important is having extra cash?"

When I started I thought all the advice about "dry powder" was sound, particularly having available money for a pullback. Then I started looking at what cash sitting there was doing for me.

Nothing.

There are a lot of things I don't need to do in the market. Among these are:

1) Make a killing
2) Find the next "hot stock" that may turn into a 100-bagger
3) Increase my net worth markedly above market returns

Once I got into dividend investing the number one thing I needed to do was increase my cash flows and I had decided that my cash flows would come from dividend income. So I stayed full invested and, once transaction fees went away, every time I got $1k from dividends, would buy with it.

Cash is lazy money. I want my money to work for me. Plus leaving cash sitting there means I think I know when the market will pull back - but if I always have dry powder I can't spend it all even then. With dividend-payers, I just put it towards generating more dividends. I won't say I don't worry at all about what the market is doing. I just don't worry about it much.

Right now I'm going into retirement and I do see cash as useful there - I don't want to be forced to sell something when I don't want to. So I've been building it since June. But I cringe a little whenever the market pulls back, like it's been doing the last few days. Hurts me when things go on sale and I have lazy money sitting there but it's lazy money with a purpose.

This is different from my emergency fund which is not counted as part of my investments - it is, sort of, but not to put in stocks.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News