So this post feels like a slight amount of market timing, but looking for some feedback on my thought process.
I’m 30 years old with currently about $310,000 in the market. I have $185,000 in VTSAX, $100,000 in some Target 50 retirement funds, and the rest is between some Mid Cap and Developed Market Index Funds.
I’m thinking in the next 5 years I would like to majorly cut back on work to maybe working 3-4 months a year (which would be enough to cover living expenses) while my investments grow.
This year, it’s looking like I’ll have approximately $180,000 to invest in the market. The $30,000 from my 401k and match are currently set to all go in VTSAX. The $7,000 from my HSA I maxed out in January also went towards VTSAX.
With how much my savings/investing will add this year, part of me is feeling like I would feel more comfortable with even a 0% return on that money as opposed to the possible gains (or very likely losses.) At my savings rate and amount saved (around 70%) I do not feel like the possible returns in this short period are going to make a sizeable impact to the growth compared to my actual savings itself.
Thoughts on my situation? I know I’ll get a million of the “you’re timing the market, dump it all in VTSAX, yadda yadda” as I’ve been around here long enough and read all the MMM blog posts.
Aside from the 401k contributions and HSA amount, I am considering keeping half of the remaining as cash and investing the other half in some sort of international market like VTWSX, or possibly all the remaining in VTWSX as I typically keep a pretty large emergency fund due to my work as a contractor.
Thoughts?