Katsmeow
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Jul 11, 2009
- Messages
- 5,308
DH recently retired and received a low 7 figure lump sum retirement which we rolled over in an IRA to Vanguard. We also have about $250k in Fidelity 401(k)s. Given the greater legal protections for 401(k)s we are inclined to keep those funds at Fidelity.
Anyway, we haven't talked to Vanguard about the plan yet but essentially they recommend a 50/50 stock bond allocation (which I'm fine with -- DH is 62 and I'm 56).
Within the Vanguard funds they basically put all of the bond part in the Vanguard Total Bond Market Index Fund Admiral Shares.
Of the stocks they put 80% of the stock portion in the Total Stock Market Index Fund Admiral Shares and 20% in the Total International Stock Index Fund.
I did tell them that we need to use about $200k of the money at Vanguard over the next couple of years in connection with building a house and some other expenses (paying taxes on money we withdrew to buy land, kids in college for example) but they did not recommend leaving anything in cash.
Any thoughts? Basically this is a very simple 3 fund plan (leaving aside the money at Fidelity -- they have asked us for the other options we have available at Fidelity which I've given but not seen anything since then).
Doing this results in, for example, over $500k in the Total Bond market index fund.
Any thoughts on whether we should break this down into more funds?
Also, given the need to use a couple of hundred thousand within the next few months and next year or so, should we leave some in the money market?
Anyway, we haven't talked to Vanguard about the plan yet but essentially they recommend a 50/50 stock bond allocation (which I'm fine with -- DH is 62 and I'm 56).
Within the Vanguard funds they basically put all of the bond part in the Vanguard Total Bond Market Index Fund Admiral Shares.
Of the stocks they put 80% of the stock portion in the Total Stock Market Index Fund Admiral Shares and 20% in the Total International Stock Index Fund.
I did tell them that we need to use about $200k of the money at Vanguard over the next couple of years in connection with building a house and some other expenses (paying taxes on money we withdrew to buy land, kids in college for example) but they did not recommend leaving anything in cash.
Any thoughts? Basically this is a very simple 3 fund plan (leaving aside the money at Fidelity -- they have asked us for the other options we have available at Fidelity which I've given but not seen anything since then).
Doing this results in, for example, over $500k in the Total Bond market index fund.
Any thoughts on whether we should break this down into more funds?
Also, given the need to use a couple of hundred thousand within the next few months and next year or so, should we leave some in the money market?