Where oh where should the money go?

[Bossman]

In early November, moved 50% of my IRA into money market funds within Fidelity. For sure, it was premature and an attempt at market timing, but helped me get some welcome sleep as I waited for global calamity.

A few months pass and the expected Tsunami of black swan events, global war and Ebola outbreaks did not occur although the jury is not out on the pandemic. This year, my home insurance is up over 12%, HOA fees up around 5%, property taxes up by 4.5%, etc as they apparently are not paying attention to the published government inflation rate. It appears that my 1.6% money market return is not going to cut the mustard as my withdrawal rate is closer to 4%.

I am looking for suggestions on how to diversify back into the market, but stay relatively conservative, although I understand I need to take on risk to make money. I can safely keep the money in the market for 5-10 years as I have additional funds for the rainy days. Please don't beat me up too much for trying to time the markets. Thanks for any input.

 

[UnrealizedPotential]

Maybe a fund like PRSIX would fit your situation. It has a little over 40% in stocks, a little over 46% in bonds, around 10% cash. I am not recommending this fund for you , just maybe one like it. It's a spectrum income fund. It's conservative but there is some exposure to stocks. Fidelity, Vanguard, etc, probably have something like it.

I like it because it's more on the conservative side . At least it gives you something to consider. I should mention the yield is 2.27%.

 

[USGrant1962]

My go-to conservative fund when I don't know what to do with some money is Vanguard Target Retirement Income (VTINX), it is 30/70, globally diversified, and includes short term TIPS.

Oh, and there are no expected black swan events.

 

[njhowie]

Oil/energy stocks are cheap now - it was extremely good timing for you to sell and build cash as they are now excellent bargains. At the current share prices, Exxon is paying a dividend over 5%, BP and Royal Dutch (Shell) are over 6%. It's a good time of year to be picking some up. They are all very cyclical - low in the winter, up in the summer.

 

[pb4uski]

Psst.... Wellesley.

 

[dtbach]

Psst.... Wellesley.

+1 More money has been lost trying to anticipate a recession than actually being in one.

 

[Ready]

+1 More money has been lost trying to anticipate a recession than actually being in one.

Hey that’s funny. I like that!

 

[mrfeh]

In early November, moved 50% of my IRA into money market funds within Fidelity. For sure, it was premature and an attempt at market timing, but helped me get some welcome sleep as I waited for global calamity.

A few months pass and the expected Tsunami of black swan events, global war and Ebola outbreaks did not occur although the jury is not out on the pandemic. This year, my home insurance is up over 12%, HOA fees up around 5%, property taxes up by 4.5%, etc as they apparently are not paying attention to the published government inflation rate. It appears that my 1.6% money market return is not going to cut the mustard as my withdrawal rate is closer to 4%.

I am looking for suggestions on how to diversify back into the market, but stay relatively conservative, although I understand I need to take on risk to make money. I can safely keep the money in the market for 5-10 years as I have additional funds for the rainy days. Please don't beat me up too much for trying to time the markets. Thanks for any input.

Sounds like you're still trying to time the market.

Choose your AA, invest your cash accordingly, and then leave it alone except to rebalance.

https://www.bogleheads.org/wiki/Bogleheads®_investing_start-up_kit