Monday 29 April 2024

Cash Management Update: Topping up FSMOne.

I had previously written about my cash management strategy which is perhaps not optimal and reflects a certain "laziness" on my part as I don't spend time chasing the best interest rate available. 

While my plan was to 'freeze' my cash holdings, the amount of cash has been creeping up because I can't bring myself to invest my entire cashflow into equities. Perhaps out of habit, I always 'save' a portion of my cashflow as cash - though I would add that a big market crash always sees a reduction in my cash holdings, as I like to buy after a crash.

One justification for doing so is that from an asset allocation perspective, saving a portion as cash ensures that my cash holdings is a certain % of my total portfolio.

At the same time, if there are easy improvements to my cash management that take very little effort, I should try to implement them.




I have decided to make the FSMOne auto-sweep account one of the places where I am going to hold my cash savings. I have been slowly topping it up further and my target is to start with $75k in it. 

In terms of liquidity, if I need to move the cash out of the iFast platform, it will take a few days. But if I need the cash for a stock market buying opportunity, it is instantly available in FSMOne to purchase SGX, LSE, HKSE, NYSE etc shares, so to that extent there is 'instant' liquidity.







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Previous cash management post for reference: BuyafterCrash: SSB T-Bill Cash Strategy





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