Background on me. Soon to be 75 years old with a pension and SS that exceed my expenses. I have a portfolio currently consisting of 50% equities; 25% bonds and 25% cash. My Vanguard brokerage and Roth IRA accounts consist of VTI and VXUS and my Vanguard Traditional IRA consists of several Vanguard bond funds. and My tax bracket is 12% but I am getting close to the next bracket of 22%.
When interest rates drop; I was wondering if it would be a good idea to take a portion of my cash and invest it in a balance account like Vanguard Balance; Vanguard Tax Managed Balance Fund or Fidelity Balance or Puritan? I am not a big fan of bond funds and I realize I will be getting bond exposure with a balance fund which is fine. I have no desire to increase my international exposure so I am not interested in Vanguard Life Strategy funds. I hate to see my cash allocation being eaten up by inflation or low returns and I do plan to keep a healthy cash position. I realize the Fidelity expense ratio are higher, but they have an office where I live in Florida. My thought is that I could always use a balance funds as a source of income if I needed it in the future. Long term I plan to leave my assets to my son Thoughts and suggestions on this strategy?
I am not concerned about increasing my asset allocation from its current ratio.
When interest rates drop; I was wondering if it would be a good idea to take a portion of my cash and invest it in a balance account like Vanguard Balance; Vanguard Tax Managed Balance Fund or Fidelity Balance or Puritan? I am not a big fan of bond funds and I realize I will be getting bond exposure with a balance fund which is fine. I have no desire to increase my international exposure so I am not interested in Vanguard Life Strategy funds. I hate to see my cash allocation being eaten up by inflation or low returns and I do plan to keep a healthy cash position. I realize the Fidelity expense ratio are higher, but they have an office where I live in Florida. My thought is that I could always use a balance funds as a source of income if I needed it in the future. Long term I plan to leave my assets to my son Thoughts and suggestions on this strategy?
I am not concerned about increasing my asset allocation from its current ratio.
Statistics: Posted by Thundering Man — Wed Sep 11, 2024 9:22 am — Replies 2 — Views 249