Where to park a million in cash?

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
XM16E1
Posts: 37
Joined: Tue Oct 22, 2019 9:34 pm

Where to park a million in cash?

Post by XM16E1 »

I've had a bit over a million sitting in savings accounts that I don't really need. Outside of my regular investment portfolio (2.5M) and outside of my emergency fund. I'm 35 years old with high income. I didn't mind this extra money making 1.5-2% via high yield savings accounts but now that interest is practically non existent and inflation has arrived, I would like to protect it as best I can.

Want to retire in the next 5 years w/ a 200k annual withdrawal. Majority of my money will come at that from selling my company,, which I will then invest.

Should I just park this cash 50/50 in VTI and FZROX or VTI and FXAIX? Markets have been pretty weak [OT comment removed by admin LadyGeek]. My tech stocks/funds are way down along with everything in lithium.
hi_there
Posts: 876
Joined: Sat Aug 29, 2020 7:00 pm

Re: Where to park a million in cash?

Post by hi_there »

I'd put it in something like 50/50 stock/bond funds, assuming your business interest is quite volatile.
Doctor Rhythm
Posts: 903
Joined: Mon Jan 22, 2018 3:55 am

Re: Where to park a million in cash?

Post by Doctor Rhythm »

I’m seeing very different market returns than what you describe. “Tech” seems to be up this year-to-date (using Vanguards’s IT funds as a surrogate), and the overall market is far from weak (S&P at all time high today and up 12.7% for YTD). Yes, the tech heavy NASDAQ had a correction earlier this year but is still up YTD.

Anyway, if it’s money that’s otherwise indistinguishable from the rest of your retirement savings, then I’d invest it as such rather than treat it as a separate bucket (with an eye towards tax efficiency).
Last edited by Doctor Rhythm on Fri May 07, 2021 4:11 pm, edited 1 time in total.
User avatar
retired@50
Posts: 5900
Joined: Tue Oct 01, 2019 2:36 pm
Location: Living in the U.S.A.

Re: Where to park a million in cash?

Post by retired@50 »

XM16E1 wrote: Fri May 07, 2021 3:37 pm I've had a bit over a million sitting in savings accounts that I don't really need.
If the above statement is true, then you should consider a charitable donation.

Note that there is a "Support this Site" link near the top of the page.

You could also consider setting up a Donor Advised Fund (DAF) at your preferred financial custodian.

Regards,
This is one person's opinion. Nothing more.
User avatar
ApeAttack
Posts: 191
Joined: Wed Dec 23, 2020 8:28 pm

Re: Where to park a million in cash?

Post by ApeAttack »

notinuse wrote: Fri May 07, 2021 3:49 pm
XM16E1 wrote: Fri May 07, 2021 3:37 pm Markets have been pretty weak since Biden took over.
The U.S. stock market total return has been about 12% year to date. Weak? Huh?
Maybe OP meant Boston Market... they really need to step up their game.
Just another lazy index investor who recently found out about I-Bonds (https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds.htm).
chassis
Posts: 440
Joined: Tue Mar 24, 2020 4:28 pm

Re: Where to park a million in cash?

Post by chassis »

How about a layered approach. It's not perfect, not rocket science, just a suggestion.

$400k in HYSA
$300k in VTSAX
$200k in a good dividend stock
$100k in a moonshot stock

The stock recommendation assumes that you enjoy, and are good at, choosing stocks.
drk
Posts: 2390
Joined: Mon Jul 24, 2017 10:33 pm
Location: Overlooking Elliott Bay

Re: Where to park a million in cash?

Post by drk »

XM16E1 wrote: Fri May 07, 2021 3:37 pm I've had a bit over a million sitting in savings accounts that I don't really need. Outside of my regular investment portfolio (2.5M) and outside of my emergency fund. I'm 35 years old with high income. I didn't mind this extra money making 1.5-2% via high yield savings accounts but now that interest is practically non existent and inflation has arrived, I would like to protect it as best I can.
You should use the portfolio review format to get better responses: viewtopic.php?f=1&t=6212
wetgear
Posts: 242
Joined: Thu Apr 06, 2017 10:14 am

Re: Where to park a million in cash?

Post by wetgear »

drk wrote: Fri May 07, 2021 4:37 pm
XM16E1 wrote: Fri May 07, 2021 3:37 pm I've had a bit over a million sitting in savings accounts that I don't really need. Outside of my regular investment portfolio (2.5M) and outside of my emergency fund. I'm 35 years old with high income. I didn't mind this extra money making 1.5-2% via high yield savings accounts but now that interest is practically non existent and inflation has arrived, I would like to protect it as best I can.
You should use the portfolio review format to get better responses: viewtopic.php?f=1&t=6212
+1
JBTX
Posts: 8218
Joined: Wed Jul 26, 2017 12:46 pm

Re: Where to park a million in cash?

Post by JBTX »

XM16E1 wrote: Fri May 07, 2021 3:37 pm I've had a bit over a million sitting in savings accounts that I don't really need. Outside of my regular investment portfolio (2.5M) and outside of my emergency fund. I'm 35 years old with high income. I didn't mind this extra money making 1.5-2% via high yield savings accounts but now that interest is practically non existent and inflation has arrived, I would like to protect it as best I can.

Want to retire in the next 5 years w/ a 200k annual withdrawal. Majority of my money will come at that from selling my company,, which I will then invest.

Should I just park this cash 50/50 in VTI and FZROX or VTI and FXAIX? Markets have been pretty weak [OT comment removed by admin LadyGeek]. My tech stocks/funds are way down along with everything in lithium.
https://www.doctorofcredit.com/high-int ... gs-to-get/

You could park some of it in some of these.

https://www.doctorofcredit.com/high-int ... gs-to-get/


https://www.doctorofcredit.com/new-bank ... hmbradley/
Post Reply