Large sum in High yield account

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Joined: Mon Jul 15, 2019 11:28 pm

Large sum in High yield account

Post by flh » Mon Jul 15, 2019 11:38 pm

Hi folks,
I have around 200k in a high yielding checking account (Citizens access) giving 2.29%. I realize that this is too high for me and to cover my 6 month expenses I need < 40K . What do you guys suggest how I move this money to my existing portfolio.
Below is my existing portfolio . My current age is 34 years [Wife does not have any brokerage/401K etc]

domestic - 43 % all in taxable account

International 13% in taxable account

Bonds 43%
VBTIX 90K - 401K
FXNAX 12K - Roth account
VTEB 132K - Taxable acc .


VTEB - Vanguard tax exempt bond
VXUS - Vangaurd international
VBTIX - Vanguard total bond
VTI - Vangaurd total market
VOO - Vangaurd S&P 500

FXNAX - Fidelity US bond
FSKAX - Fidelity total US market

ITOT - Ishares total market

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Tyler Aspect
Posts: 1328
Joined: Mon Mar 20, 2017 10:27 pm
Location: California

Re: Large sum in High yield account

Post by Tyler Aspect » Tue Jul 16, 2019 1:44 am

Maybe $120k of VTI and $40k of VXUS.

Can you open a spousal IRA account for your wife?
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Joined: Sun Mar 04, 2007 9:50 am

Re: Large sum in High yield account

Post by dbr » Tue Jul 16, 2019 9:08 am

You should have a plan for your asset allocation. Such a plan is up to you, depending on your judgement and preference for need, ability, and willingness to take risk. If you are now aware that plan should not include that much allocation to cash, then the cash should be allocated to whatever your plan is. After that you would consider how investments are located for best tax efficiency. In general cash and bonds are all "low risk" and stocks are "high risk" so between cash and bonds it doesn't matter a lot, but between stock and cash/bonds it matters more.

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Joined: Thu Jan 10, 2008 12:56 pm

Re: Large sum in High yield account

Post by retiredjg » Tue Jul 16, 2019 9:21 am

If you want your asset allocation to be 43% domestic, 13% foreign, and 43% bonds, then invest the extra money in those same ratios in the taxable account.

Your wife can contribute to a Roth IRA based on your income (as long as you are not over the income limit).

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