You say that your risk tolerance has changed. Is it possible that it has changed more than you're really conscious of, and you're not truly comfortable with your stock allocation, even in index funds instead of individual stocks?Have 2M in stocks that I have invested over the last 20 years, high risk/tech, did very well, but now my risk tolerance has changed. Sold all of it this past week. What would you recommend if now that I'm bought in to 3 part portolio, the 2M will all be in VTI. How much would you invest and on what schedule? e.g. 100K every month until 2M is invested, or all at once?
If that's true, then I'd suggest that you consider what might be the absolute lowest stock allocation you might land on, and then invest that much, pretty quickly, so that you're back in the market.
Imagine that you can confidently say that you will, absolutely, no doubt, want to have .75M of that 2M in stocks. In that case, get that .75M into the market, into whatever (presumably) index fund(s) you've chosen. You don't have to do it in one fell swoop, but instead of 100K a month, maybe 250K a day.
Then you could sit with that for a while and see if you are really comfortable with that allocation. And then maybe you decide that, yeah, you are comfortable with a total of 1.3M of the 2M in the market. So then you go put in another .55M.
And then maybe you stop. You consider putting the last .7M in the market, and...you find you're not OK with that. So maybe you go buy bond funds or a TIPS ladder with it, or just park it in T-bills while you evaluate your new risk tolerance.
Statistics: Posted by BirdFood — Sat Jun 08, 2024 11:36 pm
