I知 selling my home and I値l have about 500k to invest. I知 54 this year and plan on retiring from a Federal Service with a 30k pension in early 2024. Right now I invest in VTSAX, C Fund (S&P), G Fund (bonds) mostly. I知 thinking maybe a 60/40 allocation.
If you invested 40% in bonds, that $200k would earn $3k/year (1.5% SEC yield for Vanguard Total Bond Market). Normally during a down market, stocks have dropped significantly, and it's best to avoid selling them. The other role of bonds is to avoid selling stocks in that scenario. But with a federal pension, your first $30k doesn't have to be provided by your portfolio - you don't need as much safety. I think you could afford a higher stock allocation, if you're comfortable with it.
All $500K in cd's....do not trust this market until it drops to what YOU consider a reasonable level.
Using portfolio visualizer:
Over the past 40 years, cash returned about 4.3% per year, which turns $500k into $2.8 million.
Over that same 1980-2020, US stocks returned 11% per year, turning $500k into $33.4 million.
Historically, 100% cash is terrible advice.