I tend to agree about a longish waiting period. The question then becomes what constitutes "big." Do you consider investing a portion of the money in index funds big? What about paying off the 300k mortgage? I agree entirely on holding off on the ADU. I suppose "big" is a relative concept.I also suggest a period of waiting before big decisions, my suggestion would be a full year.While the current investments are not ideal nothing jumped out at me as needing urgent attention. With all the other things she is dealing with I agree that it is a good idea to not make any big changes for at least six months or even a year.
You and many others have made a similar comment, and I'm generally sympathetic, but let me respond here with a little background: I was throwing out that 90/10 number somewhat off the top of my head, but I've also found that it aligns with the current bond allocations of 2045 TDFs. Fidelity's (FIOFX) is at about 10% bonds right now, and Vanguard's (VTIVX) is closer to 15%. I don't believe she has ever been or will ever be one of those people who is checking on account balances of retirement accounts daily, or even weekly. In fact, I've been advising her to just check account balances and update the net worth spreadsheet every quarter based on her account statements. I just don't think the rising and falling of an equity-heavy portfolio is such a huge concern. I'm come around to the idea of dumping her entire Rollover IRA into Vanguard's 2045 TDF (VTIVX). Seems quite sensible.In my opinion a 90/10 asset allocation is likely too aggressive for a 40 year old novice investor.
Statistics: Posted by RetiOpening — Thu Oct 31, 2024 10:59 pm