I have an extra $9,000 sitting in my checking account, collecting virtually no interest. I have already maxed out my 401k, 457b, and my Roth IRA ($40,500/yr).
Where should I invest this extra money?
Are Vanguard's Lifecycle funds a good investment outside of a tax sheltered account? Are they tax efficient?
I have an issue with these funds because they don't include REITS beyond what is found in the Total Stock Market fund, and they also don't contain TIPS. These funds contain just Total Stock market; Total Bond Market, and Total International. I was hoping to duplicate what I have in my retirement accounts:
-total bond index fund
-total stock index fund
-total international (ex-U.S.) index fund
-Vanguard REIT index fund
-Vanguard TIPS index fund
I feel I would be shorting myself to settle for just the 3 funds contained in the Lifecycle fund. But, what's my alternative?
Also, I know that REITs and TIPS outside of a retirement account are not very tax efficient, so perhaps I should just settle without them?