Before I start my car in the morning the float stick for the coolant is an inch below the lip of the fill resevoir. When the car is warm the stick is at the lip. When do I need to add coolant? Should the float stick be located at the lip of the fill tank when the car is cool? 2004 32ci

You need to add coolant. On a cold engine the float tip should be even with fill opening.

+1

From the manual:

Checking the coolant level and
adding coolant
Check the coolant level when the
engine is cold, approx. 68 deg F/+20 deg C.
1. Open the cap for the expansion tank
by turning it slightly counterclockwise
to allow accumulated pressure
to escape. Then open
2. The coolant level is correct when the
upper end of the red float rod is at
least even with the upper edge of the
filler neck; see arrow. The end of the
float may stick out by a maximum of
3/4 in / 2 cm – that is, up to the second
mark on the float
3. If necessary, add coolant. If the coolant
is low, slowly add coolant until
the correct level is reached – do not
overfill.

The level will be higher when the engine is warm. This is normal. This is why you shouldn't overfill the reservoir. It's normal to lose a little coolant over time. Each car will be a little different so "normal" is a judgment call. If you're not seeing smoke out the exhaust and you're not losing much just top it off and don't worry.