I am the beneficiary of and manage my 91 year old mother's estate which is currently invested in the following Vangaurd index funds:
40% Total Stock Market
20% Total International Stock
15% REITs
20% Short-Term Bonds
5% Cash
She draws a little under 3% annually for living expenses.
I have the nagging feeling that it might be, or at least seem to be, more prudent to put all except the 5% cash in Vanguard's Wellington Fund, reinvesting dividends and selling shares as necessary to replenish the 5% cash. But I understand that fund is sensitive to rising interest rates.
Advice sought.
db
40% Total Stock Market
20% Total International Stock
15% REITs
20% Short-Term Bonds
5% Cash
She draws a little under 3% annually for living expenses.
I have the nagging feeling that it might be, or at least seem to be, more prudent to put all except the 5% cash in Vanguard's Wellington Fund, reinvesting dividends and selling shares as necessary to replenish the 5% cash. But I understand that fund is sensitive to rising interest rates.
Advice sought.
db