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Short Term Allocation Question
Old 01-08-2007, 03:36 PM   #1
Confused about dryer sheets
Join Date: Dec 2006
Posts: 9
Short Term Allocation Question

I am in the process of allocating lump sums from company stock option sales and a severence into taxable index funds at Vanguard. Eventually I will have a simple allocation of:

20% Total Stock Market Index
20% Developed International Index
6% Emerging Markets Index
6% REIT Index
6% Small Cap Value (Fidelity FCPVX)
17% Total Bond Index and Fidelity FAGIX (or Total Bond, FAGIX and TIPs)
25% Cash (in 5.05% Savings and 6.25% PenFed CD ladders)

I have about 50% of my total investments already allocated to some of these buckets. I expect another 15% on January 15th and the rest (35%) when my job terminates and I get the rest of my stock options and severence which will be some time in 2007 (maybe as late as September). I know guessing the market is taboo but what bucket(s) should I fill with the 15% I get on January 15th? Should I be conservative and start my PenFed CD ladder and Total Bond allocation or should I fill up the Total Stock Market Index and Developed International Market Index (my REIT, Small Caps and Cash allocations are fully funded)? My original plans were to fund the equities and fill the cash and bonds later but I'm second guessing lately.


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Re: Short Term Allocation Question
Old 01-08-2007, 03:45 PM   #2
Thinks s/he gets paid by the post
Join Date: Apr 2006
Posts: 1,487
Re: Short Term Allocation Question

well, the PenFed 6.25% will likely not be continued into February ... so i'd jump on that while you can.
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