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Greetings!
I have a little over a half mil in cash from a recent real estate sale parked in vanguards admiral money market fund.
I'm working up the asset allocation to divide this up into, and i'm not thrilled with the recent market run-up. I'd like another month or so to finish tweaking my allocation, and I'd like to wait for a little correction before buying in.
Yes, I know market timing never works. I just feel that we're peaking a little and that we may be in for a little dumper. 4 of the 5 times I've plowed a six figure account into investments they've dropped between 15 and 30% within a month and I had to wait six more to get back to even, so i'm gunshy of buying when the locomotive is running.
Hence, may be a month, may be 4-6 months before I go. In the meanwhile, my MM account is being reduced by inflation. I need somewhere juicier but still 'safe' relatively speaking.
I believe I saw a posting by Ted that said he likes the vanguard short term corporate fund for cash, and that looks good to me. I also looked at the short term overall index which appears to mix in more treasuries and gives a slightly lower return in exchange for more safety.
I'm avoiding any medium, long term or high yield bond funds because of the concerns about potential for inflation wiping out their NAV's.
So whats the concensus for the move. Its preferably a vanguard fund as thats where my moola is, but I do have brokerage capability there and can buy nearly anything. Needs to be simple, no redemption costs, reasonably safe but i'm willing to live with a little risk for a few extra $.
Lastly, whats the take on dividends and capital gains payouts? I'm currently planning on reinvesting div/gains from this fund back into it, but my longer term investments I'd like to have the dividends/gains paid out to my bank account and leave the original investments alone. I'm not a big fan of redeeming shares 10 years later and having to figure out 10 years of reinvestments to establish the cost basis, plus it'd be nice to have a steady stream of dough coming in. I believe the conventional wisdom is to reinvest always and rebalance annually.
Thanks for any and all replies.
I have a little over a half mil in cash from a recent real estate sale parked in vanguards admiral money market fund.
I'm working up the asset allocation to divide this up into, and i'm not thrilled with the recent market run-up. I'd like another month or so to finish tweaking my allocation, and I'd like to wait for a little correction before buying in.
Yes, I know market timing never works. I just feel that we're peaking a little and that we may be in for a little dumper. 4 of the 5 times I've plowed a six figure account into investments they've dropped between 15 and 30% within a month and I had to wait six more to get back to even, so i'm gunshy of buying when the locomotive is running.
Hence, may be a month, may be 4-6 months before I go. In the meanwhile, my MM account is being reduced by inflation. I need somewhere juicier but still 'safe' relatively speaking.
I believe I saw a posting by Ted that said he likes the vanguard short term corporate fund for cash, and that looks good to me. I also looked at the short term overall index which appears to mix in more treasuries and gives a slightly lower return in exchange for more safety.
I'm avoiding any medium, long term or high yield bond funds because of the concerns about potential for inflation wiping out their NAV's.
So whats the concensus for the move. Its preferably a vanguard fund as thats where my moola is, but I do have brokerage capability there and can buy nearly anything. Needs to be simple, no redemption costs, reasonably safe but i'm willing to live with a little risk for a few extra $.
Lastly, whats the take on dividends and capital gains payouts? I'm currently planning on reinvesting div/gains from this fund back into it, but my longer term investments I'd like to have the dividends/gains paid out to my bank account and leave the original investments alone. I'm not a big fan of redeeming shares 10 years later and having to figure out 10 years of reinvestments to establish the cost basis, plus it'd be nice to have a steady stream of dough coming in. I believe the conventional wisdom is to reinvest always and rebalance annually.
Thanks for any and all replies.