Originally Posted by tsturbo
I am 48, wife is 50, plan to retire in 10-12 years. AA is approx 40% bond, 33% us equities (vanguard total stock index fund and 33% international (vanguard total international index fund).
With the markets performance, wondering if I should put it in the VG prime money market paying about 5.0% or do I stay put and ride it out?
If it was me, I would stay put and ride it out. In fact, that is what I did with about the same asset allocation during the market dip back in 2000-2002, when I was 7-9 years away from retirement. When the market picked up in 2003, it picked up with a bang and I did pretty well.
If you are still concerned, you could always direct the dividends and any new investments towards VMMXX (Vanguard Prime MM). But if it was me, I'd just keep on doing what you are doing.
On the other hand, I have no crystal ball!! Predictions of what the market might do are pretty much anybody's guess.
P.S. - - VMMXX is only paying a little over 2% right now, not 5%.