No. of Recommendations: 2
I'm with Rayvt on not having a cash bucket, unless you have some definite rules on when to use the cash and when to replenish.Yes, I can see both sides of the cash bucket argument. You should do whatever works for you.
FWIW, my cash portion portion is largely in Schwab US Treasuries (SNSXX), currently yielding 4.9%, so it's beating inflation. I get interest from this every month, which helps pay for my living expenses. It's like a high yield money market fund where there is no risk to principal.
This is why I said "cash equivalent", not pure cash earning zero percent.
https://www.schwabassetmanagement.com/products/sns...