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Lump Sum Pension & 401k Placement Decision Ahead
Old 09-20-2018, 08:14 AM   #1
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Lump Sum Pension & 401k Placement Decision Ahead

I have 500k available as a rollover coming this in December. My thinking is just to roll it over and investing it with my current Asset Allocation 40/60. I am an early retiree at age 60 and still working part-time. Of the 500k....half comes from a Defined Pension and half from a 401k that was invested very conservatively that I had no control of until now.
With the market hitting new highs I have given some thought of dollar cost averaging into the market over say 6 months.
I am a Bolgehead and invest in a ETF 3 Fund Portfolio with Schwab.
Being concerned about sequence of returns risk,particularly for an early retirement, I have decided 40/60 feels right for me. I have 1Million prior to this rollover, along with a small pension and a strong SS stream ahead.
Thoughts on dumping it all in or overtime?
Thanks Tom

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Old 09-20-2018, 05:46 PM   #2
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If you don't mind saying, what are the 3 ETF's?
Only constructive thing I can think of is, know the duration of the bond ETF you hold.

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Old 09-21-2018, 05:37 AM   #3
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My Schwab 3 Fund Portfolio :

I wonder as well if a shorter duration Bond Fund is more appropriate?
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Old 09-21-2018, 07:09 AM   #4
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SCHZ is:
Fund Characteristics as of 06/30/2018
Weighted Average Maturity 8.4 years
Weighted Average Coupon 3.03%
Effective Duration 6.0 years
Standard Deviation (3 Yr) 08/31/2018 2.67%
We hold about 7% Vanguard VBTLX, out of 48% fixed.
That used to be higher, but have added Wellesley in two accounts for new money. Also have high interest online accounts for additional savings. Alos in the mix is checking cash.

With all that said, we've been effectively shortening duration, and building a bucket or two for next 2-3 years.

Both of us are winding down careers, for comparison.
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