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Of course this is easy for me to say, it's not my $3 million. If it was my money I would call Vanguard, put aside $600,000 (5 yrs x $120,000) in MMF's at several banks to get FDIC protection. Then I would invest 3/4 of the rest in VTSMX, 1/4 of the rest in VMBFX, and go enjoy my retirement. Each year I would pull an inflation adjusted $120K from accumulated dividends and sale of shares as needed to replenish the MMF.

The FDIC protection is cummulative. It is not $100,000 per bank. It's $100,000 per person. Spreading the money around doesn't do anything but lead to more paperwork and more to keep track of.

Keep 1 year of money liquid at ING for instance. Keep 5 years laddered in cds or Tbills. Invest the rest. You may want to talk to a professional.

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