How liquid should I be?

I have had a rough 36 hours that has caused me to seriously contemplate this question and as many of you are further along in life than I and more experienced I'd like to get some advice on this subject.

I have never looked at sports cards as an investment or a way of making money. To me I've always viewed it as a savings account. I'm a man who is easily tempted (see my 3DTV thread of last year as an example) so since my earliest job in high school my collection has been a way of me 'saving' my money so it won't get me in trouble. I haven't taken many risks with my collection. It's mostly players like Ruth, Gehrig, Cobb, Mathewson in mainstream sets like T206 and '33 Goudey. The only 'exotic' cards I have are M110s and I got in at the basement on those. I think that if I had a responsible sale I'd more or less come out even on my collection.

The key words there? Responsible sale. Listing the major cards with a reputable auction house, listing the rest myself. Taking a few months. Maybe longer if I wanted the big items in REA. The problem comes with the dreaded 'fire sale'.

My mother had a health issue come up that was, for a moment quite serious, but has seemed to have improved as of the time of this post. For a time on Monday I was strongly considering the aforementioned 'fire sale'. Why? Because I am not liquid and feared that, should she pass, I would not have the cash on hand to cover the $10,000+ that the average funeral costs today. Thankfully it does not appear to be heading that direction any longer.

So the question is, how liquid should I be? I'm 30. I'm not married. I do not have a family. I rent, rather than own. My expenses are minimal. Heck, I don't even have a pet. I don't dream of owning a business, a sports car, a speed boat, or a vacation home. My bills are paid. My belly is full (see my rib thread of two years ago). I literally don't have a care in the world 360/365 days of the year. Oh, but those 5/365 get me every time.

I realize some of you are saving for retirement, have families, college funds, small businesses, and dreams of owning assets that don't fit inside a shoe box so our situations are different, but I would really would like some advice on a healthy ratio of cash to cards.

As an example. If I have $2,500 in the bank and $25,000 in cardboard ... have I blundered?

I wouldn't say you have blundered?! While BB cards aren't particularly liquid...as cash or some securities are...I would surmise that "your" collection is relatively so...as u collect big name HOF'ers from big...popular sets.

The experts say you should have enough cash to weather a storm such as family emergency, temporary unemployment...etc...so there lies your answer!!!

If you think you may need $$$$$ for some reason in the foreseeable future...it'd probably be a good idea to have that amt of liquidity/cash on hand!!!!

I used to live kinda by the seat of my pants...spending most of my "extra" money on antiques, collectibles...bb cards...having very little cash in the bank. But I have changed my habits the last few years so I now have enough cash in the bank to weather a storm if need be...and I try to keep it at a certain level.

This is what is recommended!!!!

Your collection actually is pretty liquid. With stuff you have most big auction houses will front a good percentage of the value, especially REA who usually don't charge you a vig for the up front money. Heritage and many other AHs will charge you a percentage for an advance.

You may want a bit more cash on hand, but you haven't really blundered. Just work on building the cash reserve.

Both Pete and Jay give good advice. My opinion, $2,500 cash isn't enough. $5,000 should be the bare minimum. There is nothing wrong with selling a couple of cards to get there - the best ones to sell are obviously the ones that are easiest to replace, like 33 Goudey.

If you have a mother who lacks financial resources, you may want to talk with her about your taking out a life insurance policy on her life. You would pay for it and then when she dies the money goes to you to pay for funerals, inheritance, etc. I believe that she needs to give you written permission to do this.

I'm 35 years old and have a bank checking acct with $2500 in it but then keep another $5000 in a credit union, it will remain untouched and unused. I think that it's best to have two separate accounts because you know that reserve money is safe and untouched.

Peace of mind is more valuable than any baseball card...

Good luck...

i'm with jamie, i was thinking of life insurance for your mom also.

$2500 right now is fine, but being a single working 30 yr old i think you can put more toward that total every month.

To each person, it is different. $2500 may be enough for Quan, but it isn't enough for you. How do I know? Because you are making posts on message boards about whether you have enough cash.

Jay is right that many auctioneers will front cash for consignments, but even then, you have to wait. You've got to send the card and then they've got to send the cash. It'll take at least a week, and you never really know what will happen. What if you need the money immediately?

Let's say you work out a deal with Mile High Card Co. for a cash advance. Now, it's very likely that Brian Drent will send you the money and everyone says he's a great guy and has a great reputation, but is he really as reliable as, say, TDBanknorth or Wells Fargo? Do you really want to go to a baseball card dealer in a time of need, as opposed to, say, your bank?

Now Jay might have the right advice when he tells you to keep your cards and build your cash reserves over time. It is the most financially prudent. But you have to feel comfortable with how much cash you have, feeling comfortable in your life is the most important thing and not worrying about money. You can always realize a profit on your M110's.

Good luck,

J