I'm in my mid30s and I feel like I've been somewhat delinquent on thinking about investing. Currently, assets are $500k in low-cost / target index funds in retirement accounts (fine) plus $1.5m sitting in high-yield savings account (seems bad).
I'm in the process of planning how to move the $1.5m from HYSA into 80/20 equity / bond portfolio. I prefer to "phase-in" over 1-2 years.
Question is: what is the "right" place to put the $1.5m during the phase-in? Bonds, bond funds, money markets, HYSAs? I'm unsophisticated, so don't understand the relative risk / reward of each. The HYSAs are very safe but income is clobbered by taxes. Municipal bond funds are good for taxes and safe-ish (?) but ...... I don't think I should go "all-in" on those all at once either.
Other context: My income is currently $500k-$1m per year from owning a small business. If market conditions change, the business could fail and I would probably get a W-2 job paying << 50% of my current income. So current savings are potentially a large part of long term "nest egg", which is why I am trying to be esp. conservative. Demographic: mid 30s, married, one small child, $1m mortgage @ 3%, wife's income around $100k and pretty stable.
Many Thanks
I'm in the process of planning how to move the $1.5m from HYSA into 80/20 equity / bond portfolio. I prefer to "phase-in" over 1-2 years.
Question is: what is the "right" place to put the $1.5m during the phase-in? Bonds, bond funds, money markets, HYSAs? I'm unsophisticated, so don't understand the relative risk / reward of each. The HYSAs are very safe but income is clobbered by taxes. Municipal bond funds are good for taxes and safe-ish (?) but ...... I don't think I should go "all-in" on those all at once either.
Other context: My income is currently $500k-$1m per year from owning a small business. If market conditions change, the business could fail and I would probably get a W-2 job paying << 50% of my current income. So current savings are potentially a large part of long term "nest egg", which is why I am trying to be esp. conservative. Demographic: mid 30s, married, one small child, $1m mortgage @ 3%, wife's income around $100k and pretty stable.
Many Thanks
Statistics: Posted by xnon — Sun Sep 08, 2024 2:05 pm — Replies 1 — Views 94