Where to put 100K

[cube_rat]

Sorry if this question is too broad. I'll be receiving 100k in about a month and I'd like to put it in a place that's relatively safe, that's not a MM account. I have money already in a Vanguard Wellsely account and so far I'm very happy. I'm thinking STAR or Wellington are good funds too. Any other good recommendations on Vanguard funds which have consistent growth with low to medium volatility?

 

[brewer12345]

Time horizon? Tax status? Other investments? Risk tolerance?

 

[cube_rat]

Time horizon? Tax status? Other investments? Risk tolerance?

Time horizon = 5 years
Tax Status = married, adult children
Other investments = ~ 150K in 401K, ~70k in MM account, ~60k in Vanguard Wellsely account. real estate holdings will be zero very soon.
Risk tolerance = Do not want to risk capital, so minimal tolerance.

 

[justin]

...Vanguard Wellsely... I'm thinking STAR or Wellington...

Along the same lines, check out:
Vanguard LifeStrategy Income Fund (VASIX)
It's currently 30% stock, 70% fixed income.

 

[brewer12345]

Time horizon = 5 years
Tax Status = married, adult children
Other investments = ~ 150K in 401K, ~70k in MM account, ~60k in Vanguard Wellsely account.  real estate holdings will be zero very soon.
Risk tolerance = Do not want to risk capital, so minimal tolerance. 

I think I would just put in a non-competitive bid for the full sum in the 5 year TIPS auction next month.

 

[IHateCNBC]

Vanguard Tax Exempt Money Market (3.6%) or
Vanguard Prime Money Market (5.13%)

depending on your tax status. I believe yields are just about bottomed for now and will start to turn up.

 

[justin]

Admiral money market ($50k minimum) pays 4.95% state income tax free. Not sure what marginal state tax rate you're paying in Cali, but if it is 9% (the max?), the effective yield on Admiral Money mkt is 5.44% (I've got my money in it since I have a 7% marginal state income tax rate).

 

[IHateCNBC]

Good point Justin.  I thought he was in a tax free income state.  I believe the highest tax rate in Cali is 10.15%.  The Adm Treasury would be the one to pick.

Tips you get the best bang for your buck with the 2yr. 

Note:  How did you know he was in Cali?  I thought a tax free state because he did not bring it up.  Duh.

 

[LOL!]

Note:  How did you know he was in Cali?  I thought a tax free state because he did not bring it up.  Duh.

Wait 'til you find out that cube_rat doesn't have a Y chromosome.

 

[FinanceDude]

Wait 'til you find out that cube_rat doesn't have a Y chromosome.

I knew that.........and I'm a newbie..................

 

[IHateCNBC]

Wait 'til you find out that cube_rat doesn't have a Y chromosome.

Everything goes over my head here.

 

[FinanceDude]

Everything goes over my head here.   

Love your screen name..........

It's on the TV in our waiting area every day............

 

[IHateCNBC]

It's on the TV in our waiting area every day............

They will bury you with a smile.

My favorite quote was from Joe Kernan in 2003. "No one twisted these peoples are to buy dot.coms.

From the "cash is trash" network.

 

[FinanceDude]

They will bury you with a smile. 

My favorite quote was from Joe Kernan in 2003.  "No one twisted these peoples are to buy dot.coms. 

From the "cash is trash" network.   

Joe Kernan is an idiot, as are 99% of the "reporters" on there............even Maria was better looking a couple years ago............

Bottom line, they are making us advisors look bad..........kind of like a horrible PR dream..........

 

[cube_rat]

Wait 'til you find out that cube_rat doesn't have a Y chromosome.

 

 

[saluki9]

depending on your tax status. I believe yields are just about bottomed for now and will start to turn up.

You really think yields have bottomed? Really?

I guess that's why we have contrarians

BTW: I'd ladder some t-bills and notes, give yourself a little time to think about it

 

[jazz4cash]

.  Any other good recommendations on Vanguard funds which have consistent growth with low to medium volatility? 

Windsor II

 

[IHateCNBC]

Interesting article just posting at Vanguard:

Vanguard® Fund Percentage of
Funds Outperformed Ranking
Admiral™ Treasury Money Market Fund 100% 1 of 51
Treasury Money Market Fund 98% 2 of 51
Federal Money Market Fund 100% 1 of 72
Prime Money Market Fund 99% 3 of 190

Link to Vanguard article



EDIT: Shortened URL

 

[IHateCNBC]

You really think yields have bottomed?  Really? 

I just read the charts. It filters out a lot of noise.

 

[MasterBlaster]

Ihatecnbc:

For those of us that are not as smart as you, would you explain the chart and why you believe that it indicates yields have bottomed.

 

[IHateCNBC]

For those of us that are not as smart as you, would you explain the chart and why you believe that it indicates yields have bottomed.

It is not about being smarter then someone else it is all about looking at 2000-5000 charts a day over a number of years. 

Yields are very extended from their long term moving average.  You can expect yields to move higher.  In technical terms - pull back to the red line.   

 

[brewer12345]

Yields are very extended from their long term moving average.  You can expect yields to move higher.  In technical terms - pull back to the red line.   

Maybe. Or maybe not. Gotta pull your head out of the technician's ass sand and look around at the fundamentals every once in a while.

 

[IHateCNBC]

Maybe.  Or maybe not.  Gotta pull your head out of the technician's ass sand and look around at the fundamentals every once in a while.

Ever hear the saying "fundamentals are for fools"?

Cramer says "charts are for fools". 

If you were truly looking at the fundamentals  then the 10 year rate should be over the fed fund rate of 5.25% and you would be out of bonds now, correct? 

 

[IHateCNBC]

Fed fund rate 5.25%.

U.S. Treasury Bonds
Maturity Yield Yesterday Last Week Last Month Price Yield Chg Price Chg
3 Month 4.62 4.66 4.70 4.82 98.844 -.03 0.009
6 Month 4.77 4.76 4.79 4.90 97.599 0.01 -.008
2 Year 4.66 4.67 4.67 4.85 99.930 -.01 -.430
5 Year 4.57 4.55 4.57 4.75 100.219 0.02 -.102
10 Year 4.62 4.59 4.62 4.77 101.997 0.02 -.203
30 Year 4.76 4.73 4.77 4.92 95.856 0.02 -.414

 

[brewer12345]

If you were truly looking at the fundamentals  then the 10 year rate should be over the fed fund rate of 5.25% and you would be out of bonds now, correct? 

Explin the "logic" behind that statement. Is it some sort of immutable natural law?