Fixed portion of Asset investment

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Topic Author
JD101
Posts: 59
Joined: Sat Oct 21, 2017 9:07 pm

Fixed portion of Asset investment

Post by JD101 » Mon Jan 13, 2020 7:01 pm

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.

brad.clarkston
Posts: 716
Joined: Fri Jan 03, 2014 8:31 pm
Location: Kansas City, MO

Re: Fixed portion of Asset investment

Post by brad.clarkston » Mon Jan 13, 2020 7:17 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

Topic Author
JD101
Posts: 59
Joined: Sat Oct 21, 2017 9:07 pm

Re: Fixed portion of Asset investment

Post by JD101 » Mon Jan 13, 2020 7:36 pm

brad.clarkston wrote:
Mon Jan 13, 2020 7:17 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
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
Posts: 716
Joined: Fri Jan 03, 2014 8:31 pm
Location: Kansas City, MO

Re: Fixed portion of Asset investment

Post by brad.clarkston » Mon Jan 13, 2020 8:26 pm

JD101 wrote:
Mon Jan 13, 2020 7:36 pm
brad.clarkston wrote:
Mon Jan 13, 2020 7:17 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
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?
I haven't used it but the the forums wiki has a list of funds by brokerage that shows the equivalents :

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.

Dandy
Posts: 6050
Joined: Sun Apr 25, 2010 7:42 pm

Re: Fixed portion of Asset investment

Post by Dandy » Mon Jan 13, 2020 8:41 pm

So it at least keeps up with inflation and there is very little risk in losing the face value?
Hard to do both --keep up with inflation (especially after tax) and little risk of losing face value.

Topic Author
JD101
Posts: 59
Joined: Sat Oct 21, 2017 9:07 pm

Re: Fixed portion of Asset investment

Post by JD101 » Mon Jan 13, 2020 9:15 pm

Dandy wrote:
Mon Jan 13, 2020 8:41 pm
So it at least keeps up with inflation and there is very little risk in losing the face value?
Hard to do both --keep up with inflation (especially after tax) and little risk of losing face value.
If they are in retirement funds, then there shouldn't be tax correct?

Topic Author
JD101
Posts: 59
Joined: Sat Oct 21, 2017 9:07 pm

Re: Fixed portion of Asset investment

Post by JD101 » Mon Jan 13, 2020 9:30 pm

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.

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