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What would you do - Help Needed on Asset Allocation of 1.2mm
Old 01-14-2018, 06:13 PM   #1
Confused about dryer sheets
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What would you do - Help Needed on Asset Allocation of 1.2mm

Hi All,
I'm new here, been lurking and now getting involved!

I wanted to get some advice from the community in-terms of early retirement asset allocation. Here are my current holdings

- $600,000 in cash (recently taken out of individual stocks in taxable account)
- $210,000 in Berkshire.B (in taxable account)
- $110,000 in 401k - Vanguard Total Market Index

- $40k-60k passive yearly income from a company I own
- $150k yearly income from work (looking to cut this down substantially and start travelling)

I am trying to workout how to best allocate the $600k in cash so that it is both earning income as well as growing. Would it be best in a bond or a total market or a little bit of both?

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Old 01-14-2018, 08:20 PM   #2
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Join Date: Apr 2012
Location: San Diego
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You need to figure out your overall asset allocation you wish to achieve. No one can pick that for you. Some are comfortable with lots at risk for potential if more gain and have higher percentages in equities. Others can't sleep at night with risk and havea higher percentage in fixed income or cash. With no idea how old you are or where you are in your life there is no way to offer advice.

Also, your accounts don't add up to 1.2M... is the remainder home equity?

Retired June 2014. No longer an enginerd - now I'm just a nerd.
micro pensions 7%, rental income 18%
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Old 01-15-2018, 03:51 AM   #3
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Why did you liquidate $600,000 in equities? Was there a concentration in just one company that perhaps was also your employer?

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Old 01-15-2018, 03:57 AM   #4
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May I ask why you liquidated your personal stock account (the 600k)? I get the wanting to earn income, but do you currently need the income, need it in the near future, or just want to re-allocate?

Are you OK with buying bonds in a rising interest rate environ?
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