Re: Alternative to Money market Funds?...Portfolio diversity.

"John A. Weeks III" <[EMAIL PROTECTED]> wrote in message news:<[EMAIL PROTECTED]>...
> In article
> <[EMAIL PROTECTED]>,
> Elizabeth Richardson <[EMAIL PROTECTED]> wrote:

> > Does this mean that you think one should have zero cash?
 
> Not at all.  Cash is handy to have for emergencies and buying
> opportunities.  But don't keep the majority of your nest egg
> in cash because you think it is 100% safe.  Rather, it is just
> the opposite, cash is the only common investment that is going
> to for sure be a loser.  Keeping cash has a cost...don't have
> any more in your account than what is prudent to pay for.

A person can also reduce the need for cash by improving cash flow
through staggering CDs and bonds so that they become due on a regular
basis.

As your interest income goes up, you will have less of a need for cash
on hand.

Many brokers will give low cost loans against your stock holdings
reducing your need for cash.

-- 
   Ron