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Suggestions on how to invest lump sum
Old 05-29-2018, 09:32 PM   #1
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Suggestions on how to invest lump sum

I sold off about 18% of my portfolio to cash at the end of 2017. I was planning to buy a house but that fell through. I now am sitting on a sizable chunk of cash currently invested in an online savings account earning 1.6% APY.

I have no plans to purchase a house nor use this money for any major purchases. I have dipped into it a bit for some new furniture but aside from that, I have no short term need for these funds.

Do I simply re-invest it according to my AA? I am looking to invest/do something with about 2/3rds of the 21% cash noted below.

Current allocation is as follows, in various index and mutual funds:

Large Value 13%
Large Blend 11%
Large Growth 11%
Mid Blend 11%
Small Blend 11%
Int'l - Developed 17%
Int'l - Emerging Small Cap 5%
Cash - 21%

FWIW, only debt is about $185k on a $265k home at 4.25%. Still have about 27 years left on the mortgage.
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Old 05-29-2018, 09:40 PM   #2
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Do I simply re-invest it according to my AA?
That's what I'd do. If you thought you might need it in the mid-term I might be a little more conservative.
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Old 05-30-2018, 05:02 AM   #3
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Do I simply re-invest it according to my AA?
Another +1.
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Old 05-30-2018, 05:15 AM   #4
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+3 as long as you will not need the money in the next 5 or so years.
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Old 05-30-2018, 05:32 AM   #5
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+4, but if that makes you nervous, DCA the money back in over a period of months(4-6-12??).


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Old 05-30-2018, 07:57 AM   #6
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Do I simply re-invest it according to my AA?
Yes
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Old 05-30-2018, 10:41 AM   #7
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--- Do I simply re-invest it according to my AA? ...
Money is fungible, though most of us engage in what Richard Thaler calls "mental accounting." (https://en.wikipedia.org/wiki/Mental_accounting)

Realizing this may help you in making your decision.

That "windfall" is already part of your AA. It's no different than any other money. So the question is only "Given my current AA, do I want to rebalance and, if so, how?"
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