A better way to do pretty much what you are doing would be to use one of the Vanguard LifeStragety funds to get a "Total (US) Stock market Index" and the "Total international stock market Index" and bonds for more diversification. There are several of them with different asset allocations. You might put 10% ($50,000) into a money market for your emergency funds and short term needs then put the rest in a LifeStragety fund which would pay some dividends. https://personal.vanguard.com/us/funds/vanguard/LifeStrategy...A more conventional but less aggressive approach would be to invest in something like the Vanguard Target Retirement Income Fund which has a mix of bonds, US stocks, International stocks, and TIPS.https://personal.vanguard.com/us/funds/snapshot?FundId=0308&...A major problem with just using SPY and money market funds is that you are missing a lot of asset classes so it will be excessively volatile. Not having any internatioal stocks is a major mistake in case the dollar or the US economy runs into long term trouble.
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