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So when I came into a little over $200,000 in May 2008, I did as instinct and respected advisors suggested- sat on it in credit union and Vanguard money market accounts for 6 months. I took out just enough to fully fund IRA, spousal IRA, and SEP for a total of $20,000 in 2008.

I got a little uncomfortable with the surprise (to me) uncertainty on MM funds, but didn’t take any hasty action.

I currently have COLA adjusted pension of $70,000, $90,000 in the IRA, spousal IRA, & SEP. Most of that is in Vanguard Target 2010 (IRA), but the SEP ($25,000) is in 5 individual stocks that are down about 22% from purchase price, better than market in general.

I work at “retirement” job that equals pension amount and expect to stay at it until age 66 (2 ½ yrs) when I’ll be eligible for reduced SS (due to WEP) of about $9000 per year.

Trying to decide what to do with the $200,000 being conservative while dollar cost averaging back into the market with just a portion of the money. Present plan is to switch $25,000 of the MM into the Vanguard Fed Funds MM and get two laddered (1-2 year)$10,000 CDs through online bank such FDIC insured GMAC Bank. This would make the basic MM total a little more diversified in case of future problems in that area.

I plan to put $1000 per month from the remaining MM funds into some type of equity fund, maybe Total Stock Market, for the next 30 months to dollar cost average.

As for the credit union ½, I would buy two CDs at $25,000 each (paying about 3.5%), one 1-year, one 2-year.

From earnings and cash in credit union, I will fully fund each retirement account for the next 3 calendar years.

I’m not sure if this is too complex or too conservative. I would hope that this preserves most of the money and that which goes into equities could be wiped out without too much damage to the overall picture. House is not an issue.

Any thoughts on whether this plan is a good one or too conservative? What would be a good vehicle for the monthly $1000 of dollar cost averaging?
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