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|Subject: Re: $950K ... now what?||Date: 1/25/2013 1:56 PM|
|Author: MisterFungi||Number: 34724 of 35122|
Quick update for anyone who may be interested.
I cannot reallocate my past TIAA-CREF contributions. But I can -- and now have -- changed the allocation of future contributions (which will most likely be only the next 18 months, which is when I retire). The new allocation is:
50% Vanguard Balanced (VBAIX)
25% Vanguard Total US Stock Market (VITSX)
20% Vanguard Total International Stock Index (VTSNX)
5% Vanguard Emerging Markets Equity (VEMIX)
The balanced fund is roughly 60% US equities, 40% fixed income. The fees on these Vanguard funds are extremely low. Boring, I know. But I feel comfortable with it.
My wife and I also started Roth IRAs with Schwab and put the max possible for 2012 and 2013 into them. I have yet to invest those funds but plan to do so soon, focusing on dividend-growth (esp. things like REITs, for which dividends are not otherwise tax-advantaged). And I have a small traditional IRA that I've largely ignored for a few years but will now pay more attention to.
That still leaves the bulk of the Schwab investment accounts. I am gradually investing their large cash balances. There is now, and will be more of, a mix of stocks and bonds in them. Plus a bit fun money for trading. (I amazed myself by actually booking some profits trading TBF.)
We will probably keep three years' salary tucked away in savings/CDs. Zero debt. First grandchild expected in early March. I even signed up yesterday for the Great Aloha Run (on Presidents Day) here in Honolulu. Life is good.
So, there is still more to do. But I feel good about what we've accomplished already this year.
Thank you all for helping me get moving on this!
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