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Old 11-17-2011, 11:06 PM   #1
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I have 50% of my retirement in cash,the rest in Index funds. I'm thinking 10% cash, 20% in Short Term Bond Index Fund, 10% in Intermediate Bond Index, 10% in Vanguard Long Term Treasury (VUSTX). I have been sitting on cash way to long. Some thoughts please.
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Old 11-19-2011, 01:33 PM   #2
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Quote:
Originally Posted by Carol911 View Post
I have 50% of my retirement in cash,the rest in Index funds. I'm thinking 10% cash, 20% in Short Term Bond Index Fund, 10% in Intermediate Bond Index, 10% in Vanguard Long Term Treasury (VUSTX). I have been sitting on cash way to long. Some thoughts please.
Personally, with interest rates near all-time lows, I would not invest in any bond, CD, or other income mutual fund with a maturity much over 2 years. There are some CD's that an be broken early with a minimal interest penalty, and these might be good, assuming the bank does not retroactively change the terms of the CD as at least one credit union has.
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Old 11-19-2011, 04:00 PM   #3
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Quote:
Originally Posted by Carol911 View Post
I have 50% of my retirement in cash,the rest in Index funds. I'm thinking 10% cash, 20% in Short Term Bond Index Fund, 10% in Intermediate Bond Index, 10% in Vanguard Long Term Treasury (VUSTX). I have been sitting on cash way to long. Some thoughts please.
I'd toss about 5-10% in the Vanguard high Yield.
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Old 11-19-2011, 10:41 PM   #4
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Are you in the accumulation phase or the de-cumulation phase? It does appear that you are risk-avers.

I think it is a good time to buy equities (I am 95% equities and almost no cash). But you have to make up your own mind.

However, Uncle Mick's favorite, Wellesley (Vanguard VWINX) would be a good place to start. I bought some VWINX after long thought.
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Old 11-20-2011, 04:01 AM   #5
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Personally, I would go with more CDs and more municipal bonds. Please note, however, that I am one of the more "conservative" investors on this website....
Quote:
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I have 50% of my retirement in cash,the rest in Index funds. (...) Some thoughts please.
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Old 11-20-2011, 07:37 AM   #6
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A lot depends on how old you are.

Rather than have 3 different bond funds, you could just invest 40% in the Vanguard Total Bond Index Fund. While it would be simpler to have one fund vs three, Total Bond would probably have a higher duration and have more interest rate risk than the collection of funds in your OP.
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Old 11-20-2011, 09:07 AM   #7
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Are you in the accumulation phase or the de-cumulation phase?
For me, that would be the first question.

My "opinion" would be based upon that answer, along with different questions related to if the OP is in retirement, approaching retirement, or has many years of accumulation left to go until planned retirement.

More (personal) info required, from my POV...
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Old 11-20-2011, 11:33 AM   #8
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Quote:
Originally Posted by Carol911 View Post
I have 50% of my retirement in cash,the rest in Index funds. I'm thinking 10% cash, 20% in Short Term Bond Index Fund, 10% in Intermediate Bond Index, 10% in Vanguard Long Term Treasury (VUSTX). I have been sitting on cash way to long. Some thoughts please.
Carol,

My "cash" position (really, cash equivalents - i.e., SPDAs, GIF, CDs, I-bonds, etc.) is greater than 50%. I am more risk averse than most here as well.

Along with the other good advice you have been offered, let me ask you this question: How much money have you LOST by holding cash? Right now, though I wish there were a way to exploit my relatively high-cash position, I don't worry too much about it at night - with the possible exception of roaring inflation which will come, maybe not today, maybe not tomorrow, but soon... Right now, my gold/silver position from the early 00s has kept me more than even with inflation, thank-you-very-much. But that isn't a recommendation for now. Just glad I bought when I did. Actually, the only "recommendation" I ever make is to be "lucky", heh, heh.

Do you have access to a GIF (Guaranteed Income Fund) or so-called Stable-Value fund in your 401(k)? My StabVal is currently only paying about 2%, but it NEVER goes down (unless I take some out of it).

I agree with others that we don't have enough detail to make suggestions. Also, none of us is qualified to make "recommendations", so never forget that YMMV. But, good luck. I'll be watching this thread as i need the same advice.

An aside: As a (former) scientist, I consider cash as "potential energy". As a former pilot, I consider cash "altitude". If you are either of these, you will know what I mean (i.e., it's a "good" thing!).
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Old 11-20-2011, 03:18 PM   #9
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I'd consider including some Vanguard Inflation-Protected Securities, some foreign bonds (Loomis Sayles Global) and pass on anything long-term for now.
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Old 11-21-2011, 08:30 AM   #10
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Personally, I would not invest any of that cash today. Opportunities coming.
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