You can retain your existing allocation by distributing the Schwab 15 percent cash into the existing SP500 and the rest in something with no fees or ER's, (non fund) like a Treasury Ladder (bill/note/bond: state/fed local tax advantaged?) or CD ladder that spreads from 1-3 years, or like that, and it would change a little of the way that your money is diversified in the portfolio. Or consider Muni Bonds (state tax advantages) Just a thought. There are many ways to do things and what works for others or you is not the same, vs vs.1) No set term in mind right now, but leaning toward long term (10+ years). No requirements for cash, just happen to have that big chunk left over after some initial re-balancing and accounts consolidation. Would prefer to invest most, if not all of it. Income is steady for the foreseeable future. I do have another account with money that I plan to use for the big expenses you listed.#1
It depends on if you need access to it, if it is short term, no term, or longer, if you want to tolerate some or all of it in volatile funds that have fluctuating value.
Do you anticipate future lumpy expenses or "unpredictables"? How secure is your income stream?
House purchase? Marriage? Change of stage of life? Potential job loss or income stream change?
In your financial structure, is there a requirement to hold that cash level?
Have you considered?
Treasury (not funds) Ladder or CD Ladder, etc ???
#2
Congratulations on your successes and a good plan.
Percent allocation to "International" is highly individual. Some have none and that works, some follow Vanguard's rising percentage as they change their target date funds and "fund of funds" over time. While some say that "International" adds volatility without the payback, others say different.
Are you on a "glidepath" or set allocation"?
j
I hadn't considered the the ladders before. Thanks for the suggestion, I'll need to do some research.
2) Not sure what you mean with those terms. Will need to look into that.
j
Statistics: Posted by Sandtrap — Sun Jul 07, 2024 7:43 am — Replies 5 — Views 194
