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Meanwhile, there is no gain in keeping cash. Brokerages are paying 0.01% and such on free cash. This is a real incentive to calculate upcoming expsnses carefully and not keep extra money in cash accounts. So the cash component of my brokerage accounts stands below 0.5%.

Normally I'd have a bond allocation well over 50%--but not now. The interest being offered doesn't justify it.

If the dividend on common shares is a higher % than the same company is paying on their bonds, and it is my assessment that the company is doing well, then I'll opt for the stock. The dividend will be increased in good times, while the interest on the bond will not be increased--it may be eliminated by an early call.

I understand your position but "sorta" don't agree for MY circumstances. Approaching retirement I have my CD (usually bonds but not now) ladder and short-term bonds. I also have a percentage in TIPS for the long-term. But I do have a fairly high cash position (over a year of our combined gross salary) in cash which I understand is earning nothing.

It is there in part because I consider now a time for more emergency funds. It is also there because I think there are some extraordinary buying opportunities (like last week -- which I missed and we're looking at Florida condo's this month) and IMO it is worth foregone expense not to tie up that money in this very volitile market.

Good question! It would be interesting to know the age of the respondents.

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