This thread seems to be right up Don's "alley." Maybe we will be fortunate enough to have Don reply to these questions.
As a general comment, despite the very low interest-rate environment that continues to prevail, I don't ever advocate keeping money under the mattress, especially for younger people. Two percent annually on $20,000 surely isn't a fortune ($400), but money is money, and it's always better in your pocket than not.
Next, while I believe in diversification for larger amounts of money, I think, for relatively smaller "portfolios," simpler is better. For example, for that amount of money, I think five different "pockets" just isn't necessary.
Finally, I just never have been much of a bond person. And, although I have the highest regard for Vanguard and have a lot of my money with them in equity index accounts, I really don't approve of junk bond funds for investments (the euphemism is "High Yield"; they just leave out the "high risk" part!).
Don't know I've added much that you may not already know, but in today's environment, you have to look to more unconventional areas to earn significantly higher returns with your non-blackjack portfolio, separate from simple bank accounts or risky non-insured investments.
Don
Except the question was specific to what to do with the portions of your blackjack bankroll not currently in play, hence my emphasis on bonds. Yes, I have a portion which s in a riskier end of the bond market, but I understand the risks and rewards so use it to mitigate the other risks of low yield investments. Right now, inflation risk is not a big deal but the portfolio isn't meant to be period specific, it is meant to be relatively stable and liquid as a backup for the cash needed to sustain the periodic bj draw downs.
I have other portfolios for non-blackjack related monies, which are more equity and real estate oriented.
Last edited by UNCBear4SJ; 02-20-2020 at 06:09 AM.
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