We recently opened a Vanguard account and have been investing solely in VTSAX. We are keeping 20,000 in a 1% savings account. I know a lot of you don't agree with this but it helps my husband to sleep at night so right now it is what it is. We have figured out for our AA 48% Total Stock Market, 24% Total International Stock Market, 8% REIT, 20% bonds.
We need to open an IRA for each of us, but I'm really not sure what to do with it. I planned to have bonds and REIT's in them, but with REIT's as high as they are right now I'm just not sure if that's my smartest move. And with 20,000 in savings do I really need to be worrying about bonds right now? I had planned to use the extra from this past paycheck to open the IRA's but everytime I go to do it I am not sure of my game plan and end up not.
We have about 11,000 - 15,0000 extra each month to invest so I can open and invest in the the IRA's for 2014 next month if that's smart.
I understand AA and the importance of it and I've been reading books like mad. I guess I just don't understand what your gameplan should be for getting to your target allocation? Do I just keep putting it in VTSAX since that will be our highest AA percentage?
Thanks so much!!