bradaz2488
Recycles dryer sheets
- Joined
- Aug 12, 2013
- Messages
- 275
Hello,
Looking for some advice. I'm 50 and ER'ed last May. I recently rolled over my ex-megacorp 401K to a IRA and now siting on a lot of cash that I need to put to work at some point. Right now I'm 45% equities, 5% bond and 50% cash across all my tax-deferred and taxable accounts. The cash bucket is 30% in tax-differed and 20% taxable accounts. Like others I'm concern that the markets are a little over heated and a 10-15% pullback would not be a big surprise, but I have never been good at timing the markets ... Also, I know I need to move money into Bonds at some point, but based on my understanding there is concern that Bonds still have a long way to fall if interest rates continue to rise. With the concern of Bonds & low yield on CD's it seems the only game in town for yield is equities. My retirement plan assumes a 6% average annual return on my investment accounts and I want to use low fee Index & ETF funds vs. the manage funds I had to use in my Megacorp 401K. My tax-deferred account is with Fidelity and my taxable account is with Charles Schwab. My "desired" AA is 65% equities, 20% Bonds and 15% Cash... FIRECal showed 100% success rate with this AA.
What I would like feedback on is:
1) How would you put this cash back to work? All in at once, dollar cost averaging or buying on dips?
2) Would you treat the tax-deferred account different then the taxable account? Example: Go all in with the tax-differed and do Dollar cost averaging with the taxable. The thinking here is I would not be taking money from the tax-deferred accounts for some time (around age 67)
3) Given the yield concerns on Bond yields would you increase the % in equities until Bonds looked more again or just leave it in cash?
4) Any recommendations on Index & ETF funds at Fidelity or Schwab?
Thinking about all of this is making my head spin so any feedback would be much appreciated.
Looking for some advice. I'm 50 and ER'ed last May. I recently rolled over my ex-megacorp 401K to a IRA and now siting on a lot of cash that I need to put to work at some point. Right now I'm 45% equities, 5% bond and 50% cash across all my tax-deferred and taxable accounts. The cash bucket is 30% in tax-differed and 20% taxable accounts. Like others I'm concern that the markets are a little over heated and a 10-15% pullback would not be a big surprise, but I have never been good at timing the markets ... Also, I know I need to move money into Bonds at some point, but based on my understanding there is concern that Bonds still have a long way to fall if interest rates continue to rise. With the concern of Bonds & low yield on CD's it seems the only game in town for yield is equities. My retirement plan assumes a 6% average annual return on my investment accounts and I want to use low fee Index & ETF funds vs. the manage funds I had to use in my Megacorp 401K. My tax-deferred account is with Fidelity and my taxable account is with Charles Schwab. My "desired" AA is 65% equities, 20% Bonds and 15% Cash... FIRECal showed 100% success rate with this AA.
What I would like feedback on is:
1) How would you put this cash back to work? All in at once, dollar cost averaging or buying on dips?
2) Would you treat the tax-deferred account different then the taxable account? Example: Go all in with the tax-differed and do Dollar cost averaging with the taxable. The thinking here is I would not be taking money from the tax-deferred accounts for some time (around age 67)
3) Given the yield concerns on Bond yields would you increase the % in equities until Bonds looked more again or just leave it in cash?
4) Any recommendations on Index & ETF funds at Fidelity or Schwab?
Thinking about all of this is making my head spin so any feedback would be much appreciated.