I've been thinking recently about how much of one's net worth should be held in cash. I think it's a question we've considered before here... Perhaps it's time for a poll? Cash is a risk modifier. As well as being the oil which greases the engine of capital growth Some people pull figures out like needing to have 3/6/12 months' expenses covered...others suggest a % i.e. 5/10/20%. Of course it depends on your actual and contingent liabilities... for example if you have a big margin loan with a relatively high gearing level then perhaps it's prudent to have sufficient cash on the sidelines to meet a big margin call... Conversely if you're just starting out then probably much bigger % of your net worth should be in cash. E.g. if you're worth $100k then holding 10-20% cash could be prudent to see you through those unanticipated expenses and life's emergencies. But if you're worth $10m would it be efficient to keep $1m-2m in cash??? Just some random Friday musings... Cheers N.