Hello Gurus,
Thanks for taking time to read my post.
Let me explain my situation, I am 42 year old with two dependents (spouse & child). My child is 11 year old. We live in an Apartment in San Diego paying $1850 for the rent.
I lost money couple of times in the stocks, so I became over-cautious, and have been too conservative with the investment
I have a 401K with a balance of $145K, with the below allocation.
Cash --36%
Bonds --20%
Balanced/Asset Allocation--22%
Stocks -- 22%
Break-up of my investments in the 401K is as below
Stable Value Option 51K ( This fund occasionally gives some dividend)
GNMA Fund(VFIJX) 29 K
VTTVX 1.5K
VTHRX 7.8K
VTTHX 10.5K
VBAIX(30%) 12.2K (30% goes to this fund from my monthly contribution)
VEIRX(40%) 16.8K (40% goes to this fund from my monthly contribution)
VIGIX 1K
VIMAX(30%) 12K (30% goes to this fund from my monthly contribution)
VPMAX 1.5K
I know it doesn’t make any sense to have so much in the Cash and Bonds, but I have been waiting for some correction to move the funds from “Stable Value Option” & “GNMA fund(VFIJX).
Can someone please suggest what should be ratio in which I should spread my investments in my 401K? Also, do I need to wait for any market correction or shall I move funds in regular intervals? And what funds should I invest in?
I also have around $200K in my checking account, I know I am stupid to keep such a large amount in the checking account. The main reason for keeping the funds in checking account was that couple of years back I wanted to purchase a house, however it didn’t materialize. And now the home prices have gone up considerably, and I am little scared to buy the house now, sine some people are suggesting there could be a slowdown in the real estate market.
Please suggest how I should invest this money sitting idle in my checking account? Shall I look to buy a home or invest somewhere else. If I should invest in the stocks/funds what would you suggest ?
I also have the below investments, if I can say so. I invested in Roth IRA & Traditional IRA for tax savings.
Traditional IRA in my spouse’s account 5K ( This money is sitting idle in the IRA Account, not invested in any mutual funds)
Roth IRA 16500 (This money is sitting idle in the IRA Account, not invested in any mutual funds)
Scottrade - $16900 ( In the last five years, I did invest in couple of stocks and made 2K profit on the investment of $10k), now the funds in my trading account are not invested in any stocks/funds.
Can you please suggest how I should be investing my money.
Thanks in advance.