Interest rates are high now. Money market funds and short-term T-bills earn between 4 and 4.35%. Not much difference between those cash-equivalents and a bond fund, except the bond fund is more volatile and over a long time might eke out another percent or so, if you're lucky.2025: Reduce VUSXX to $50,000; T Bills to $50,000 (maybe consider 7 or 10 year T-Notes instead as the T-Bills mature) and buy VTBLX in 401(k) after selling VTSAX in 401(k) and buy VOO in taxable to maintain a 40% US stocks, 20% international and 40% fixed income allocation. Does that work or will I still be sitting on too much cash equivalents in taxable?
In short, if I had your problem, I wouldn't consider it a problem. I'd just keep money in T-bills and notes. (In fact, this is exactly what I am doing.)
Statistics: Posted by snic — Tue Dec 31, 2024 1:44 pm