Fender: The portfolio you're proposing using is probably not a very good one. He says it has way too much cash in it, and that's going to drag on the portfolio over long periods of time. Fender: You can live with up to 20% if it's in at least some shorter term bonds or something. But 30% of cash in a portfolio stuffed into a pillowcase and calling it a cushion is not a good idea.