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.
Where to park a million in cash?
Re: Where to park a million in cash?
I'd put it in something like 50/50 stock/bond funds, assuming your business interest is quite volatile.
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Re: Where to park a million in cash?
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).
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.
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Re: Where to park a million in cash?
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.
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Re: Where to park a million in cash?
Maybe OP meant Boston Market... they really need to step up their game.
May all your index funds gain +0.5% today.
Re: Where to park a million in cash?
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.
$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.
Re: Where to park a million in cash?
You should use the portfolio review format to get better responses: viewtopic.php?f=1&t=6212XM16E1 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.
A useful razor: anyone asking about speculative strategies on Bogleheads.org has no business using them.
Re: Where to park a million in cash?
+1drk wrote: ↑Fri May 07, 2021 4:37 pmYou should use the portfolio review format to get better responses: viewtopic.php?f=1&t=6212XM16E1 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.
Re: Where to park a million in cash?
https://www.doctorofcredit.com/high-int ... gs-to-get/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.
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/