Positioning $600k Taxable Portfolio

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rwt74
Posts: 13
Joined: Wed Jul 03, 2019 9:06 pm

Positioning $600k Taxable Portfolio

Post by rwt74 »

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
3funder
Posts: 1814
Joined: Sun Oct 15, 2017 9:35 pm

Re: Positioning $600k Taxable Portfolio

Post by 3funder »

Keep what you need in cash and invest the rest according to your AA.
Global stocks, US bonds, and time.
the_wiki
Posts: 2882
Joined: Thu Jul 28, 2022 11:14 am

Re: Positioning $600k Taxable Portfolio

Post by the_wiki »

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.
wetgear
Posts: 859
Joined: Thu Apr 06, 2017 10:14 am

Re: Positioning $600k Taxable Portfolio

Post by wetgear »

rwt74 wrote: Thu Aug 18, 2022 9:41 am
What do you think? How would you position this money right now given current market uncertainty?
The market is always uncertain I wouldn’t change my strategy as nothing has changed.
mikejuss
Posts: 2833
Joined: Tue Jun 23, 2020 1:36 pm

Re: Positioning $600k Taxable Portfolio

Post by mikejuss »

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.
50% VTSAX | 25% VTIAX | 25% VBTLX (retirement), 25% VTEAX (taxable)
placeholder
Posts: 8421
Joined: Tue Aug 06, 2013 12:43 pm

Re: Positioning $600k Taxable Portfolio

Post by placeholder »

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.
invest4
Posts: 1905
Joined: Wed Apr 24, 2019 2:19 am

Re: Positioning $600k Taxable Portfolio

Post by invest4 »

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.
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