I have 50% of my retirement in cash,the rest in Index funds. I'm thinking 10% cash, 20% in Short Term Bond Index Fund, 10% in Intermediate Bond Index, 10% in Vanguard Long Term Treasury (VUSTX). I have been sitting on cash way to long. Some thoughts please.
Carol,
My "cash" position (really, cash equivalents - i.e., SPDAs, GIF, CDs, I-bonds, etc.) is greater than 50%. I am more risk averse than most here as well.
Along with the other good advice you have been offered, let me ask you this question: How much money have you LOST by holding cash? Right now, though I wish there were a way to exploit my relatively high-cash position, I don't worry too much about it at night - with the possible exception of roaring inflation which will come, maybe not today, maybe not tomorrow, but soon... Right now, my gold/silver position from the early 00s has kept me more than even with inflation, thank-you-very-much. But that isn't a recommendation for now. Just glad I bought when I did. Actually, the only "recommendation" I ever make is to be "lucky", heh, heh.
Do you have access to a GIF (Guaranteed Income Fund) or so-called Stable-Value fund in your 401(k)? My StabVal is currently only paying about 2%, but it NEVER goes down (unless I take some out of it).
I agree with others that we don't have enough detail to make suggestions. Also, none of us is qualified to make "recommendations", so never forget that YMMV. But, good luck. I'll be watching this thread as i need the same advice.
An aside: As a (former) scientist, I consider cash as "potential energy". As a former pilot, I consider cash "altitude". If you are either of these, you will know what I mean (i.e., it's a "good" thing!).