Fixed portion of Asset investment
Fixed portion of Asset investment
I have about $400K in cash money market with Schwab which I believe is earning no interest. This is part of my stable/fixed asset allocation,what is the best way to invest this amount? So it at least keeps up with inflation and there is very little risk in losing the face value? Would you recommend bond funds? or money market or whatever else? Please guide me.
JD
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- Joined: Fri Jan 03, 2014 7:31 pm
- Location: Kansas City, MO
Re: Fixed portion of Asset investment
I have my FI in a mix of (roughly):
10% Cash in CITBANK 1.80% APY account.
10% IRA - FXNAX
40% Bank CD ladder
40% TreasuryDirect EE bonds
10% Cash in CITBANK 1.80% APY account.
10% IRA - FXNAX
40% Bank CD ladder
40% TreasuryDirect EE bonds
70% AVGE | 20% FXNAX | 10% T-Bill/Muni
Re: Fixed portion of Asset investment
The amount I have is in IRA account with Schwab. Looks like bond index fund can provide 3-4% return over 10 yrs. Any recommendation on Schwab bond index fund?brad.clarkston wrote: ↑Mon Jan 13, 2020 6:17 pm I have my FI in a mix of (roughly):
10% Cash in CITBANK 1.80% APY account.
10% IRA - FXNAX
40% Bank CD ladder
40% TreasuryDirect EE bonds
JD
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- Posts: 1726
- Joined: Fri Jan 03, 2014 7:31 pm
- Location: Kansas City, MO
Re: Fixed portion of Asset investment
I haven't used it but the the forums wiki has a list of funds by brokerage that shows the equivalents :JD101 wrote: ↑Mon Jan 13, 2020 6:36 pmThe amount I have is in IRA account with Schwab. Looks like bond index fund can provide 3-4% return over 10 yrs. Any recommendation on Schwab bond index fund?brad.clarkston wrote: ↑Mon Jan 13, 2020 6:17 pm I have my FI in a mix of (roughly):
10% Cash in CITBANK 1.80% APY account.
10% IRA - FXNAX
40% Bank CD ladder
40% TreasuryDirect EE bonds
https://www.bogleheads.org/wiki/Three-fund_portfolio
It shows SWAGX as the closest match to the Vanguard fund that would be your best bet.
70% AVGE | 20% FXNAX | 10% T-Bill/Muni
Re: Fixed portion of Asset investment
Hard to do both --keep up with inflation (especially after tax) and little risk of losing face value.So it at least keeps up with inflation and there is very little risk in losing the face value?
Re: Fixed portion of Asset investment
If they are in retirement funds, then there shouldn't be tax correct?
JD
Re: Fixed portion of Asset investment
Schwab Total Stock Market Index (SWTSX)
Schwab International Index (SWISX)
Schwab U.S. Aggregate Bond Index Fund (SWAGX)
I'm looking at 3 fund portfolio with CS. The international index fund doesn't have China and India the two biggest emerging market? Vanguard international does have about 12% allocated to two countries.
Schwab International Index (SWISX)
Schwab U.S. Aggregate Bond Index Fund (SWAGX)
I'm looking at 3 fund portfolio with CS. The international index fund doesn't have China and India the two biggest emerging market? Vanguard international does have about 12% allocated to two countries.
JD