Cash Heavy -- What to do?

[Anonymous]

DH is recently retired. Our living expenses are about $300K a year. Starting next spring, there will be annual distributions from his deferred comp account of approximately $350K after taxes over the next ten years (depending on market conditions).

We have about $1.4M in cash sitting in a money market right now. This is due to stock option exercises over the past year. Our net worth is $14M+ and our allocation is about 60% in equities.

Right now I am not comfortable investing the cash, but our financial advisor thinks we should consider investing a small amount every month (about $50K). I am inclined to hold out until the market corrects, but unsure this is the right decision.

Anything else we can do with all this cash other than keep it in the money market account?

[Anonymous]

Can you do Roth conversions of his deferred accounts? Use the excess cash for the tax bill.

[Anonymous]

I would do as your advisor says, $50k a month. I was terrified to do the same before the election. I ended up investing it all and so thankful that it did because I would have missed out on a lot of gains.

[Anonymous]

You have no use for this much cash. It's mental for you. Nothing to do with math or having more. You are going for less, because it allows you to sleep at night.
Keep $500k in cash and see if you can get used to such a small amount.

[Anonymous]

We keep about 2-3 years of our annual spending in cash accounts so that if there is a correction we are not selling into it. The rest of our investing is in equities, private equity and bonds. We are retired and my husbands deferred comp ended last year after five years and about $800k a year. Our social security, pensions and now required IRA distributions totals around $400k a year so and instead of reinvesting all of our dividends we pull out $25k per month.

[Anonymous]

Anonymous wrote:DH is recently retired. Our living expenses are about $300K a year. Starting next spring, there will be annual distributions from his deferred comp account of approximately $350K after taxes over the next ten years (depending on market conditions).

We have about $1.4M in cash sitting in a money market right now. This is due to stock option exercises over the past year. Our net worth is $14M+ and our allocation is about 60% in equities.

Right now I am not comfortable investing the cash, but our financial advisor thinks we should consider investing a small amount every month (about $50K). I am inclined to hold out until the market corrects, but unsure this is the right decision.

Anything else we can do with all this cash other than keep it in the money market account?

I don’t think you’re cash heavy.

10% of your NW in cash, or 5 years of living expenses, in a money market that’s paying a decent rate isn’t a bad play.

[Anonymous]

I just hit the number I needed so I could retire today if I wanted. However I'm going to keep working for a bit longer and adding to my cash stash.

[Anonymous]

Anonymous wrote:We keep about 2-3 years of our annual spending in cash accounts so that if there is a correction we are not selling into it. The rest of our investing is in equities, private equity and bonds. We are retired and my husbands deferred comp ended last year after five years and about $800k a year. Our social security, pensions and now required IRA distributions totals around $400k a year so and instead of reinvesting all of our dividends we pull out $25k per month.

OP here. So do you think we should keep about $1M cash and invest the rest? Start now with $50K a month now? Or should we wait?

[Anonymous]

Anonymous wrote:DH is recently retired. Our living expenses are about $300K a year. Starting next spring, there will be annual distributions from his deferred comp account of approximately $350K after taxes over the next ten years (depending on market conditions).

We have about $1.4M in cash sitting in a money market right now. This is due to stock option exercises over the past year. Our net worth is $14M+ and our allocation is about 60% in equities.

Right now I am not comfortable investing the cash, but our financial advisor thinks we should consider investing a small amount every month (about $50K). I am inclined to hold out until the market corrects, but unsure this is the right decision.

Anything else we can do with all this cash other than keep it in the money market account?

Do Kick Up munis with it.

[Anonymous]

If you can project when you might want some of that cash you could get a little higher yield with a mix of term rate and credit risk. The downside is if there is a major correction in equities you might realize a small loss selling the bonds to buy at a discount.

[Anonymous]

Anonymous wrote:DH is recently retired. Our living expenses are about $300K a year. Starting next spring, there will be annual distributions from his deferred comp account of approximately $350K after taxes over the next ten years (depending on market conditions).

We have about $1.4M in cash sitting in a money market right now. This is due to stock option exercises over the past year. Our net worth is $14M+ and our allocation is about 60% in equities.

Right now I am not comfortable investing the cash, but our financial advisor thinks we should consider investing a small amount every month (about $50K). I am inclined to hold out until the market corrects, but unsure this is the right decision.

Anything else we can do with all this cash other than keep it in the money market account?

Buy IAUM and UEC ETFs. Hold for 1 year. You’re welcome.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We keep about 2-3 years of our annual spending in cash accounts so that if there is a correction we are not selling into it. The rest of our investing is in equities, private equity and bonds. We are retired and my husbands deferred comp ended last year after five years and about $800k a year. Our social security, pensions and now required IRA distributions totals around $400k a year so and instead of reinvesting all of our dividends we pull out $25k per month.

OP here. So do you think we should keep about $1M cash and invest the rest? Start now with $50K a month now? Or should we wait?

Don’t buy S&P index funds right now. Rate cuts about to juice the market to all time highs.

[Anonymous]

My husband wanted to pull out of the stock market this year, we've made so much money because I didn't listen to him. You can't time the market.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We keep about 2-3 years of our annual spending in cash accounts so that if there is a correction we are not selling into it. The rest of our investing is in equities, private equity and bonds. We are retired and my husbands deferred comp ended last year after five years and about $800k a year. Our social security, pensions and now required IRA distributions totals around $400k a year so and instead of reinvesting all of our dividends we pull out $25k per month.

OP here. So do you think we should keep about $1M cash and invest the rest? Start now with $50K a month now? Or should we wait?

Not PP. This is a personal decision. You said before you are 60% equities. So is your 40% in fixed income assets? If equities tanked, would you have enough funds to last you for a good amount of time? What’s your comfort level of time? We’d like between 3-4 years of funds, that’s our choice. If that was your choice as well and your yearly expenses were 300k, you should have 1.2M in fixed income assets (which includes cash). This is basic stuff and I’d think your CFP would have this factored into your portfolio.

[Anonymous]

F**** off troll.