Hi all, up until recently I'd be socking some cash away in a traditional savings account, for a down payment for a second home, so I've got $200K sitting in there. Plans have now shifted, and we've decided to just rent vacation houses while we travel for the foreseeable future since we're still working with kids and just wouldn't get away enough to justify buying. Not to mention sky high real estate in desirable mountain towns.
The 401k's have been maxed since the start and I'm 100% comfortable with those as is, we almost have the "too much" problem in those as MMM has said in his blog posts. We have some investments in Vanguard funds, 40% VTSAX, 20% VTIAX, 20% VBTLX allocations, and I was thinking I'd like to convert most of the $200K into those funds. In hindsight I should've been putting it in as we saved it, but now I'm a bit cautious about a one time dump of a large sum like that into a market at an all time high. I suppose I shouldn't care in the long term, as I do have faith in the markets long term.
It is reasonably likely that we wouldn't touch this money again for 10-15 years, but may look to bleed it from ages 55 to 62 to supplement our income stream until we tap the 401k's. We're 42 now.
What would you do in this situation? Dump it all in right now, bleed it in $10K a month or something like that? I'm leaning towards putting $150k all in to the fund allocation above, and retaining $50k in a high yield savings to fund the next several years of our vacation rentals in mountain towns, perhaps revisiting the idea of buying down the line.
Appreciate any advice!