I keep 95% of my networth in stocks and only 5% in cash. The 5% cash is equivalent to around 2 years

Hey there,

Firstly, it's great that you have 2 years of expenses in cash - that's a solid emergency fund! But having 95% of your net worth in stocks might be a bit risky, depending on your comfort with risk and your time horizon.

Here's why:

1. Stock markets can be volatile. While they often rise over the long term, there could be periods of downturns. If you need to access your money during a downturn, you might have to sell at a loss.
2. Diversification is key to a healthy portfolio. This means spreading your investments across different types of assets, like bonds, real estate, or even gold. This can help cushion the blow if one asset class, like stocks, takes a hit.

Here are some steps you could consider:

1. Double-check your risk tolerance. Our Risk Assessment tool at BearSavings.com might help with this.
2. Consider diversifying your portfolio across different asset classes.
3. Use our Savings Goals Tracker to ensure your financial goals are aligned with your investment strategy.

Remember, every investor's situation is unique. You're the captain of your ship, I'm just here to help you navigate. Keep sailing towards your financial goals!

I am doing the same!