How to invest cash

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victor_smith
Posts: 1
Joined: Thu Jun 10, 2021 4:42 pm

How to invest cash

Post by victor_smith »

Hi,

Can you please suggest how to invest cash (in 7 figures) over the period of time. Right now its all in CDs. I want to invest it periodically (may be twice a month) in Vanguard index funds, may be index target retirement funds (2050 or so).

My main questions are:

1. What time frame should i use to invest all of this cash - in next 12 month, next 24 months?
2. Is there a better option than indexed target retirement fund, so that I dont have to do asset allocation myself.
3. The stock market is all time high , so how can i limit the risk?

Thanks in advance.
pkcrafter
Posts: 14917
Joined: Sun Mar 04, 2007 12:19 pm
Location: CA
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Re: How to invest cash

Post by pkcrafter »

Welcome, here are a couple of links to get you started.

https://www.bogleheads.org/wiki/Getting_started

https://www.bogleheads.org/wiki/Tax-eff ... _placement

As to you question--

Is this cash in taxable accounts?

Do you have any tax-advantaged accounts?

How much of total assets is this cash?

Low cost target funds are very good, but they should be in tax-deferred accounts. Vanguard also has a nice tax-managed balanced fund.


Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.
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BolderBoy
Posts: 5702
Joined: Wed Apr 07, 2010 12:16 pm
Location: Colorado

Re: How to invest cash

Post by BolderBoy »

victor_smith wrote: Thu Jun 10, 2021 4:51 pm 1. What time frame should i use to invest all of this cash - in next 12 month, next 24 months?
2. Is there a better option than indexed target retirement fund, so that I dont have to do asset allocation myself.
3. The stock market is all time high , so how can i limit the risk?
1. Get it all done inside of 12 months.
2. You could look at a Lifestrategy fund. They have various fixed AAs.
3. The market is regularly at an 'all time high' (isn't that the name of a Bond movie song?) Ignore it. Manage risk by choosing an AA that is right for you.
"Never underestimate one's capacity to overestimate one's abilities" - The Dunning-Kruger Effect
JD2775
Posts: 925
Joined: Thu Jul 09, 2015 10:47 pm

Re: How to invest cash

Post by JD2775 »

From what I understand Target Date Funds are not very tax efficient to hold in a taxable account, especially talking those numbers you are. Someone smarter and more knowledgeable than me though can chime in to confirm.
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