vanguard target fund

[cute fuzzy bunny]

Well heck, an easy question...since someone just asked me that a couple of days ago and I still have the PM!

Its about 50% equity, 40% bond and 10% cash and equiv.

taxable

28% wellesley
10% wellington
10% short term bond
10% prime money market
5% high yield corp
3% energy
3% precious metals
3% europe
3% pacific
1.5% gnma

IRA

10% REIT
4% emerging market
3% small cap value
2% international explorer
3% healthcare

Way over-cashed due to just selling my wifes house 2 weeks ago. When I think equities have reached a more reasonable point, I'll commit the $ in the prime money fund into wellesley, wellington or perhaps the ever racy equity income fund (all equity, same managers as wellesley/wellington). If I'm really juiced by lowered valuations, I might even convert some wellesley or wellington into the equity income fund.

Since we're now able to pay the bills and healthcare with my wifes check, I dont need to be so income oriented and conservative...so I may ultimately tip us towards a 70/30 or even 80/20 mix between equity income and short term bond in the taxable portfolio.

[laurence]

Just curious TH, but why not DCA into the market a little bit at a time (say 5% a month of the cash you'd like to invest). If I remember from another thread you think the bottom is about a year from now, that spreads you over that time period nicely. That way if it rockets up sooner, hey, at least you were part way in. (or if it tanks you haven't put all your eggs in yet).

[cute fuzzy bunny]

I could do that but honestly I dont even want to buy a little right now.

I wanna wait for a better deal. Yah, I know, the world is littered with the cast off husks of people who waited for the next correction. If equities werent overpriced by almost any measure and we werent facing continued rising interest rates, I'd be a little more worried about my conservative strategy.

But do remember, we have an income stream that more than satisfies our expenses, and even playing it super conservative theres no way we'll spend all the money we have before we're exceptionally decrepit.

I used to wonder why guys like Bill Gates have such incredibly conservative portfolios when they have so dang much money they can handle a riskier strategy. Simply, they dont have to.

Some day soon I'm quite sure I'll see a price point I can live with and move half my cash into equities. Some time after that I may move the other half.

When prices are more in line, I'll also feel better about indexes and index based life strategy/target retirement type funds.

[laurence]

Good point, TH. We are in totally different places, financially. Good thing we have the midnight baby feedings to fall back on for conversation!

[preben]

I am FI and follow th's train of thought too. Currently about 1/3 in equities, 1/3 fixed income+alternative and 1/3 RE and plan to keep that split far into FIRE unless somebody just offers TOO much for any of my real estate!

[cute fuzzy bunny]

Good point, TH. We are in totally different places, financially. Good thing we have the midnight baby feedings to fall back on for conversation!

In fact, it was EXACTLY at midnight last night, then the boy slept until almost 7 this morning. I think I have this down to a science!

And you're right. I have my best conversations with him. I tell him stuff and he smiles and gurgles back. He's becoming quite vocal, zipping out 10-15 second series of sounds. Dont know where he gets that from