Hello,
I currently have $200,000 in cash and $410,000 in a taxable account invested 50% VTSAX, 30% VTIAX and 20% VBTLX. With inflation, rising rates and recession risks rising, I have been debating moving some of this cash to the taxable account to invest and forget OR moving some of the taxable account funds to cash (savings, CD or T-bill ladder at 2-3%) to wait for a better day to invest (or some combination of both). This money includes an emergency fund ($50k), a big tax bill next year ($30k), some big purchases ($10k) and an early retirement / college fund to start drawing out in 10-15 years. My goal would be to double this money then with additional regular investment and returns/interests.
What do you think? How would you position this money right now given current market uncertainty?
Thank you,
RWT74
Positioning $600k Taxable Portfolio
Re: Positioning $600k Taxable Portfolio
Keep what you need in cash and invest the rest according to your AA.
Global stocks, US bonds, and time.
Re: Positioning $600k Taxable Portfolio
If you need the cash in less than a few years, you probably just want it in things like MMF or T bills. If it is for farther out, invest it like the rest of your money.
Re: Positioning $600k Taxable Portfolio
Do not try to time the market, OP.
Keep a bare minimum of cash on hand and invest the rest of it now. You'll thank us in a few decades.
Keep a bare minimum of cash on hand and invest the rest of it now. You'll thank us in a few decades.
50% VTSAX | 25% VTIAX | 25% VBTLX (retirement), 25% VTEAX (taxable)
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Re: Positioning $600k Taxable Portfolio
There is always a chance that the market will never be this low again and you could be sitting in cash for a long time waiting on a better time to invest.
Re: Positioning $600k Taxable Portfolio
Our forum is littered with posts from people who tried to "read the tea leaves", made their bet, and shared their regret.
No one knows the future.
No one knows the future.