January 11, 2021: Smart Cash Management: Can I Just Withdraw From My Bond Portfolio?
by MyPlanIQ | Jan 12, 2021 | Asset-Allocation, Bonds, Economy, Feature, Gold, Headline, Income, Inv, Investments, IRA, Markets, Mutual-Funds, newsletter, Portfolios, Retirement
Re-balance Cycle Reminder All MyPlanIQ’s newsletters are archived here.
Regular AAC (Asset Allocation Composite), SAA and TAA portfolios are always rebalanced on the first trading day of a month. the next re-balance will be on Monday February 1, 2021.
Please note: As of March 1, 2020, we officially phased out our old rebalance calendar for both SAA and TAA. They are now always rebalanced on the first trading day of a month.
As a reminder to expert users: advanced portfolios are still re-balanced based on their original re-balance schedules and they are not the same as those used in Strategic and Tactical Asset Allocation (SAA and TAA) portfolios of a plan.
Smart Cash Management: Can I Just Withdraw From My Bond Portfolio?
We always pay attention to cash management as we believe most investors and savers have been ill served by banks or brokerages for their cash. Many people simply ignore and dismiss this ‘unsexy’ part without knowing that some companies rely on cash to make most profit (see, for example, July 8, 2019: Surprise! Brokerages Make Most From Your Cash, Not Commissions).
In this newsletter, we look at one of the simplest ways to handle cash and concludes that in many scenarios, it works well enough.
Handling short term ‘safe’ investments
Roughly, one can divide investments into two parts: long term stock-type risk investments and short term bond-type ‘safe’ investments. Notice ‘safe’ is just simply a relative word: it does not imply bond or fixed income investments to be safe, but just relative to stocks, they are safer.