I'm wondering if anyone has advise on this.
I'm looking to retire in less than 5 years. At that time, or before then, I intend to sell my home and downsize. I'm currently refinancing my home, and expect to close in the next 14 days. It's a cash-out refi...I'm taking $500K equity out of my home, and will invest. Some of you helped talk me through those decisions (thank you for that, it was very helpful!).
When the time comes to move, I don't intend to touch these funds (in fact, I estimate that I'll get another big chunk when I downsize).
Now I'm thinking about what to do with that $500K. I tend to invest and forget, so I'd like to think I can tolerate some volatility for a few years...especially since I'm still contributing and accumulating.
My Assets:
tax-deferred (401K, traditional IRA, HSA - I don't qualify for Roth IRA):
$364K VTSAX
$31K VTSNX
$32K VIEIX
$33K VINIX
taxable:
$245K VTSAX
$275K mix of mostly S&P500 funds (Most of the S&P500 funds that I'm invested in are long-term (10+ years), and would create a massive tax event for me to sell)
One option is to put all $500K in VTSAX. Another option I'm considering is moving towards a 3-fund portfolio, and using my tax-deferred accounts to invest in bonds, and use the taxable account for US and Int Stock, to be more diversified. Something like this:
tax-deferred:
$390K VBTLX
$50K VTABX
$20K VTSAX
taxable:
$380K VTSAX
$275K mix of mostly low-fee S&P500 funds (Most of the S&P500 funds that I'm invested in are long-term (10+ years), and would create a massive tax event for me to sell)
$363K VTIAX
I'm mid-40's...if that matters.
What would you do?
*edited to fix typo