what I was trying to find out is what others have done in the same situation and what made them take that route.
I see what you're saying. Here's what I am doing:
27% - Vanguard Total Stock Mkt Index Fund
8% - Vanguard International Growth Fund
5% - Vanguard REIT Fund
5% - Cash (currently at ING earning 2%)
10% - Vanguard Short Term Corporate Fund
35% - 25-27 Year TIPS (I'm waiting for 2.5%)
10% - 6-10 Year TIPS
I chose these investments because:
- Investment costs are very low.
- Inflation should be covered pretty well via TIPS and stocks.
- I think international stocks may do relatively well as other countries develop economically and their citizens have more disposable income.
- REITs seem to have a weak correlation to stocks and I hope they'll dampen volatility and provide a decent return.
- I'm convinced that Short Term Bonds will beat cash most of the time, so I plan to use that for liquidity.