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Six Weeks out
Old 05-12-2019, 09:24 AM   #1
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Six Weeks out

I have put in motion to sell my business. Started it over 20 years ago. I'm 54 DW is 61 and retired. Quite a mental shock when it really comes to doing the deed. Situation is a follows


Sale price 2.5M, getting chk at closing for 1.9M tax should be about 600K. Will be owed 600k over the next 4-6 years depending on profit of business in future. Also will be owed over 500K in receivables over next 12 months. Staying on at 130k per year for a couple of years. They are paying healthcare for at least 24 months. Our finances are as follows before sale


No House payments
No children to support
5.5m in cd's / fixed annuities at 3% al due in 3-10 years
800k in muni bonds avg 3.2%
650k in ira / sep vehicles
150k for bills / etc


I don't know why the mental block. I should be happy, but I am worried. I need some advice on where to put the money I will be getting within the next few weeks. Very conservative in the past, but would like a better return.
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Old 05-12-2019, 09:34 AM   #2
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Quote:
Originally Posted by pletal View Post
I need some advice on where to put the money I will be getting within the next few weeks. Very conservative in the past, but would like a better return.
Pssst! Wellesley...
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Old 05-13-2019, 05:19 PM   #3
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Congrats!!!

I would go with VTI, VOO, or VUG, since $1.3M will be only about 19% of your investable assets. With the market volatility recently, it may be challenging timing your entry point. I would then start buying the dips, and add to your equity percentage until you at least get to 50%. Good luck!

IMHO, with your current AA, there's no reason to go with Wellesley, which owns 61.7% bonds AND 2.14% short-term reserves. The equities exposure of the fund includes 44% Europe and 6.5% emerging markets. You'd just be adding to your already overly conservative position. The Wellesley Admiral shares have only returned 2.81% over the past year, and a rather sad 1.70% since inception in 2017.
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Old 05-13-2019, 05:47 PM   #4
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Why are you limiting yourself to $135K when your very conservative assets must give you at least $200K?

Well that's your decision. Since you want a bit more equity exposure, I'd go with Vanguard Wellington. If you want all equity with the new money I'd go with Vanguard Dividend Growth.
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Old 05-13-2019, 05:52 PM   #5
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Since you want a bit more equity exposure, I'd go with Vanguard Wellington. If you want all equity with the new money I'd go with Vanguard Dividend Growth.
Wellington has an AA of 65/33/2. The OP would be taking 35% of $1.3M and investing in similar, low-no-growth assets, rather than actually changing his AA significantly. For someone who's assets are so fixed-income-heavy, buying into a balanced/value fund doesn't make so much sense, IMHO.
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