Hello All...
I've been reading the boards for awhile and thought I'd post a couple questions I have related to my portfolio.
First some background....I'm currently married and both my wife and I are in our mid 30s. We have very good incomes and have saved a decent amount (about $350K in retirement accounts and $550K in taxable accounts). The retirement accounts are invested about 70% stocks / 30% bonds, mostly in index funds available through each of our employers. The taxable accounts are mostly in cash except for about $140K in some bonds ($100K) and individual stocks ($40K). I have no debt and are currently house hunting (so I will need some of the $550K for a downpayment).
My question is more related to the taxable accounts -
1) First, what are your thoughts on a pure indexing versus active approach (active meaning some individual stock selection, sector funds, etc.....not market timing). I consider myself a pretty experienced investor with a business background. I enjoy researching / following the markets, but at the same time know about all the studies that say you can't beat the market over the long term. Just curious what people's experiences have been with this? Do you purely index or mix in some active investing?
2) The taxable balance has grown quite rapidly over the past few years. As a result, I find myself with a LOT of cash, which I know makes no sense in my situation (won't need the money for a long time, I continue to save a lot each month, no debts). How would you approach puting the money back to work? All at once? Spread over time and if so, what time period? I know it probably makes sense just to invest it immediatly based on my desired AA, but don't want to end up top ticking the market.
thanks for the help in advance
I've been reading the boards for awhile and thought I'd post a couple questions I have related to my portfolio.
First some background....I'm currently married and both my wife and I are in our mid 30s. We have very good incomes and have saved a decent amount (about $350K in retirement accounts and $550K in taxable accounts). The retirement accounts are invested about 70% stocks / 30% bonds, mostly in index funds available through each of our employers. The taxable accounts are mostly in cash except for about $140K in some bonds ($100K) and individual stocks ($40K). I have no debt and are currently house hunting (so I will need some of the $550K for a downpayment).
My question is more related to the taxable accounts -
1) First, what are your thoughts on a pure indexing versus active approach (active meaning some individual stock selection, sector funds, etc.....not market timing). I consider myself a pretty experienced investor with a business background. I enjoy researching / following the markets, but at the same time know about all the studies that say you can't beat the market over the long term. Just curious what people's experiences have been with this? Do you purely index or mix in some active investing?
2) The taxable balance has grown quite rapidly over the past few years. As a result, I find myself with a LOT of cash, which I know makes no sense in my situation (won't need the money for a long time, I continue to save a lot each month, no debts). How would you approach puting the money back to work? All at once? Spread over time and if so, what time period? I know it probably makes sense just to invest it immediatly based on my desired AA, but don't want to end up top ticking the market.
thanks for the help in advance