Where to put $20k

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FlyHi
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Joined: Thu Mar 24, 2011 11:32 am

Where to put $20k

Post by FlyHi » Tue Oct 23, 2012 4:43 pm

My partner is 67, retired with no debt or mortgage. She easily lives off of her pension & SS and has more than enough set aside for emergencies. Her 30/70 portfolio consists of:

CD Ladder: 22@

VG Tgt Retirment Inc (VTNX): 30%

VG Wellesley Adm (VWIAX): 48%

This week she will receive over $20,000 from a CD that has come due I am looking for advice on which fund to put it into. Since I believe she should increases her equity ownership I was thinking of Wellengton.
“If you want to feel rich, just count the things you have that money can't buy”

Timcom99
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Joined: Sat Mar 19, 2011 10:34 am

Re: Where to put $20k

Post by Timcom99 » Tue Oct 23, 2012 7:57 pm

[IMHO] Wellington is a Great fund of about 65% large cap value stocks and 35% medium term corporate Bonds. Kind of a more equity heavy version of the Wellesley fund she already has. Either do that or just invest the $20,000 in VTSAX which is the Admiral Class version of the Vanguard Total Domestic Stock Market Index Fund. Then all $20,000 will go straight into domestic equities and you can control it from there. Either way is a good way to go. The Wellington (Fantastic Fund) will compliment your Wellesley but the Vanguard Total Domestic Stock Fund will give you full control of a pure stock fund for balancing.

thebogledude
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Re: Where to put $20k

Post by thebogledude » Tue Oct 23, 2012 8:41 pm

I would just continue to maintain your asset allocation with it; rebalance it to your target retirement and/or wellesley.

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Watty
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Re: Where to put $20k

Post by Watty » Tue Oct 23, 2012 10:11 pm

I didn't dig through all the numbers but it looks like she has very little international exposure.

It might be good to add and international index fund.

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DiscoBunny1979
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Re: Where to put $20k

Post by DiscoBunny1979 » Tue Oct 23, 2012 10:52 pm

Are the monies from an IRA CD? If from a taxable account, why not put some of the $$ into I-Bonds which is tax deferred interest for 20+ years? Anyone can be named as beneficiary. Of course, there's also the option of buying a few ounces of Gold as that would really add to diversification. If not those choices, I'd just add to the funds already holding.

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Jerilynn
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Location: USA, Earth

Re: Where to put $20k

Post by Jerilynn » Sat Oct 27, 2012 3:45 pm

FlyHi wrote: Since I believe she should increases her equity ownership
Why do you believe this? Is it because equities have done really well recently? If stocks would have tanked over the last year, would you still want to increase equity allocation?
Cordially, Jeri . . . 100% all natural asset allocation. (no supernatural methods used)

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BL
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Re: Where to put $20k

Post by BL » Sat Oct 27, 2012 9:42 pm

I would buy $10,000 in I-bonds from treasurydirect.gov (preferably before November 1), and put the rest in Target Retirement Income. This is still increasing the equity to some extent; how much depends on what portion of her CDs the $20,000 is.

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