14-03-2015, 01:59 PM
I'm mostly a silent reader since I'm still a novice with not much experience/knowledge to contribute. But I had benefit a lot from many of the postings from the generous folks here. Let me start by giving my most utmost thanks to everyone here.
I had this question for the longest time but till now I do not have a clear answer. With the bull market running for 5 years now, this question weighs even heavier.
Question 1: Should we be 100%(or close to 100%) vested all the time since many always said market timing is impossible(at least for normal folks like me)? Plus some also said cash is a dead weight in the portfolio since it is eroding its value with inflation.
Question 2: If we are 100% (or close to 100%) vested, do that mean that we will have no war chest? If we do have a war chest, we are considered not 100% vested already... (Emergency funds are not included as they will never be used in stocks purchase)
For me, I'm currently I am 80% vested with the rest of 20% in my OCBC 360 account earning 3% interest (trying to make the dead weight more useful). I will buy in again whenever the cash portion grows over 30%. But with the market become higher, it seems to be harder to buy as well...
Question 3: With the market getting higher, should I cut down on the ratio and fatten my war chest? But will it contradict on the theory of "do not time the market"
I know there is no right or wrong and there are many different ways to successful investing. Wanted to hear what are the others views on these.
Thank you very much in advance.
I had this question for the longest time but till now I do not have a clear answer. With the bull market running for 5 years now, this question weighs even heavier.
Question 1: Should we be 100%(or close to 100%) vested all the time since many always said market timing is impossible(at least for normal folks like me)? Plus some also said cash is a dead weight in the portfolio since it is eroding its value with inflation.
Question 2: If we are 100% (or close to 100%) vested, do that mean that we will have no war chest? If we do have a war chest, we are considered not 100% vested already... (Emergency funds are not included as they will never be used in stocks purchase)
For me, I'm currently I am 80% vested with the rest of 20% in my OCBC 360 account earning 3% interest (trying to make the dead weight more useful). I will buy in again whenever the cash portion grows over 30%. But with the market become higher, it seems to be harder to buy as well...
Question 3: With the market getting higher, should I cut down on the ratio and fatten my war chest? But will it contradict on the theory of "do not time the market"
I know there is no right or wrong and there are many different ways to successful investing. Wanted to hear what are the others views on these.
Thank you very much in advance.