tag:blogger.com,1999:blog-23550078.post116709615224163760..comments2009-01-06T07:24:31.033-06:00makingourwayhttp://www.blogger.com/profile/13748811641577990850noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-23550078.post-1167528148704130642006-12-30T19:22:00.000-06:002006-12-30T19:22:00.000-06:00Wayne, thanks for the kind thoughts - I'm glad it's interesting to you.<BR/>I wish 2007's goals were more impressive. What we're really seeing is a likely shift of cash and investment assets into personal real estate (not a true asset) - at least until I sell my NC house.<BR/>We're also seeing alot of time off and reduced income - but then again it should be a cheery experience non-monetarily.<BR/><BR/>I would be careful in not considering brokerage (non-retirement) investments as NOT cash reserves. In general these investments can be liquidated within a week. There is the question of volatility. But if you can handle the volatility your non-retirement investments are subject too, you might want to minimize the actual cash you have on hand.<BR/><BR/>When I move, I may open up an LOC and put most of my cash into brokerage investments.<BR/><BR/>Recently I've kept the amount high due to volatility in our personal situation:<BR/>- changing jobs<BR/>- moving<BR/>- buying a new house<BR/>- high risk executive job (could lose it fast)<BR/><BR/>When we move I'll probably lower the cash reserve after we're settled. Probably in August of 2007. Most likely to about $90k, which represents about 6 months of expenses. If I set-up a HELOC, I might lower it to $50k.<BR/><BR/>I liquidated the insurance policies because they were inappropriate investments - more than life insurance.<BR/><BR/>We created ILITs with two times the insurance cover on 30 year terms for less premiums. We then liquidated the cash values of the policies and will place them in low cost index investments - imagine the fees will go from 2.x% down to 0.2%. Big difference.<BR/><BR/>The only value I can find for cash value life insurance is as a means to protect assets. And even there it's tricky.<BR/><BR/>Regards,<BR/>makingourwaymakingourwayhttp://www.blogger.com/profile/13748811641577990850noreply@blogger.comtag:blogger.com,1999:blog-23550078.post-1167409890703251772006-12-29T10:31:00.000-06:002006-12-29T10:31:00.000-06:00Hi, just discovered your blog from another and it is interesting read. Not done going through all. Impressed with goals for 2007. I too need to build cash reserves as I had placed most of it in taxable accts containing stocks bonds and mutual fund. Realized how important it is to be liquid. Why the large amount for yourself? Also why did you cash out your insurance policy? Large amount there, you must have overfunded. <BR/><BR/>WWAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-23550078.post-1167187007509939722006-12-26T20:36:00.000-06:002006-12-26T20:36:00.000-06:00Thanks myroad, it's wonderful to hear such kind comments - more support for the challenging discipline required to navigate the complex and predatory seas of our modern financial system.<BR/><BR/>regards,<BR/>makingourwaymakingourwayhttp://www.blogger.com/profile/13748811641577990850noreply@blogger.comtag:blogger.com,1999:blog-23550078.post-1167139027033496062006-12-26T07:17:00.000-06:002006-12-26T07:17:00.000-06:00Hi, <BR/><BR/>I am pretty new to this blog but I am very impressed with your management of finance! I don't have any new ideas to add to your suggestions. I learn a lot from your blog and I want to congrat(belatedly) you on the new job and new baby! How exciting.Anonymousnoreply@blogger.com