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Originally Posted by none
Yes that's why I liked the suggestion of going with a Target fund
so 16% Vanguard Prime MM, 84% Vanguard Target Retirement 2015
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My question would be if you plan on reinvesting the dividends from the Target Retirement/Wellesley, or if you will spend the cash.
If you're spending the dividends, then I don't see why you need to keep 16% in cash - 84% of your entire portfolio will be throwing off around 2-4% in dividends each year, so even if the market dives, I wouldn't expect the dividends to be impacted too much. That would require a lot less in cash reserves, and allow more of your nest egg to grow.
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Dryer sheets Schmyer sheets
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