Where to invest cash?

[BenjaminGraham]

Hello,

I am fortunate to be writing a post like this, but essentially the question is where would you invest cash right now if you were me:

- Cash: $130k
- High Yield CD (Comes due in Q2 21): $100k
- 401K: $270k
- Brokerage: $200k
- Bonds / Gold / Etc.: $200k
- Age: Late 20s
- Location: U.S. - I travel a lot for work so I rent

I'd like to keep $50k in cash, so ultimately plan on investing $180k over the next year ($100k CD + $80k of cash). Thoughts on dollar cost indexing into ETFs?

Thanks.

[Dancin'Dog]

The majority on the forum here tend to prefer VTI (VTSAX).  QQQ & VGT are more tech/NASDAQ leaning.  Personally, I've done well with TAN & the ARK funds this year (ARKW, ARKK, ARKG, etc.). 


You mentioned a "brokerage" account.  What's that invested in?

[KungfuRabbit]

My friend, there is no such thing as a high yield CD, unless you bought it like 20 years ago.  You are wayyyyyyy too young to have so much of your money sitting in cash / bonds / gold. 

VTI is the method this forum uses, just tracks the global market returns.  Personally my favorite is targeted ETFs, similar to the above poster (TAN and ICLN have done well for me, renewable energy isn't going away)

[Morning Glory]

Your allocation is way too conservative for someone your age.  Either go total market index or maybe a rental property with your cash, if that makes sense for you. You shouldn't have bonds in the accumulation phase, and gold is not an investment.  50k might be too much cash to leave out of the market too, but it depends on your situation.

 70% of the time you are better off investing your whole lump sum rather than dollar cost averaging.

[FLBiker]

I'm 44, similar net worth to you, 5 yo daughter, just about FI.

My Asset Allocation is: 50% US stock, 35% INT stock, 5% REIT (although, really, I wouldn't bother) and 10% bond.  So, as other have said, to me, this seems very conservative.  I'd go into stock ETFs (VTI, VXUS) but ultimately it depends on your risk tolerance.

And I wouldn't go NEAR CD's at this rate.  I've got my emergency fund in a "high" interest account earning 1.5%, and the rest I'm investing.  We sold our house a few months ago, so I've been dollar cost averaging for the past few months.  I should have just put it all in in July. :)

[maizefolk]

VTI is the method this forum uses, just tracks the global market returns. 

Just a minor clarification. VTI tracks US returns, not global ones. Worldwide returns is VT.

Some folks just buy VTI. Some buy a combination of VTI and VXUS (the non-US world).

[Dancin'Dog]

The majority on the forum here tend to prefer VTI (VTSAX).  QQQ & VGT are more tech/NASDAQ leaning.  Personally, I've done well with TAN & the ARK funds this year (ARKW, ARKK, ARKG, etc.). 


You mentioned a "brokerage" account.  What's that invested in?

ARKG gained 6% today.  :)

[Dicey]

Agree with all of the above. Way too conservative for your age. For your cash, i recommend cc churning and bank bonuses. Heres a lovely rabbit hole:

https://forum.mrmoneymustache.com/share-your-badassity/bank-account-churning-how-to-make-$1600-in-a-year-by-being-organized/350/

[ChpBstrd]

If the funds must be kept in cash, a bank CD or money market fund are your only passive options. Active options include bank account churning, which could yield several times what a CD would pay. See https://www.doctorofcredit.com/best-bank-account-bonuses/