Without knowing more specific details, it's hard to go against your money managers advice.

You said a majority is already in funds so having a small percentage in cash might not be the worst place to be if you are really thinking you might retire and take your pension in 5 years.

How aggressive you want to be is also dependent on what percentage of your expected expenses will be covered by the pension. I.E. if your pension will cover most of it, then you can be more aggressive.

When you actually get close to retirement, it's no longer about maximizing returns, you also have to think about cash management so you can live your life and not be forced to sell or cut back your lifestyle during a down year.

I dca into the sp500. Recently I had a large chunk to invest so I spread it over 10 months at 10% a month.

For people with a shorter timeframe I prefer SCHD.

I'm curious what you mean by "respectable" mutual funds?

Anyway, I echo the idea of allocating 1-5% of your portfolio to the only monetary asset in the world with fixed supply. The important of this will become clearer as we move forward.

Tumble Weed said:

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I dca into the sp500. Recently I had a large chunk to invest so I spread it over 10 months at 10% a month.

For people with a shorter timeframe I prefer SCHD.

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What happens to S&P valuations in a hyper inflationary environment?

Do the stocks go to infiniti? Or does the fact they are valued in dollar cash flows whose value approaches zero as you go forward in time cause them to fall?

Hmm. This will be interesting.

I wasn't trying to come across the wrong way, having money outside market participation is kind of a new thing for me so seeking advice helps.

I've been a no-coiner till very recently, but maybe a couple of percent into BTC would be prudent. My biggest concern is that, without real estate or other physical assets, I'm still vulnerable to a major stock crash. I do have some lead holdings before anyone asks.

Thanks for your contributions!

Camo said:

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What do i do? I have a bajillion dollars and have already invested in 3 bangle tigers, a black hawk helicpoter, bought some farmland in Idaho from the chinese, wipe my bum with bitcoin USBs, and just bought a quaint B&B in Ukraine.

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Lucky.

Few can beat the market and the market is cheap right now so your guy's advice is on the nose.

Were I you I might also pick up a bunch of blue chips in 100 share lots to write options on. Ford, AT&T and Intel, to name a few, are all on sale.

Personally, I'd be finding a new advisor.

YouBet said:

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I'm stacking cash right now. Have never tried to time market, but I'm willing to sit out 4Q22 because I'm not sure how it gets any better before 2023.

Europe is going to **** the bed diarrhea style this winter. And we will get splashed.

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Me too. But I put some in 6-month T Bills so at least that will earn close to 4% while waiting.

Nothing objectively wrong with advice to DCA into a passively managed fund when it's 20% lower than it was 9 months ago. If you were selling something 2-3 months ago to "avoid the crash" there's some sort of market timing approach going on (which is not categorically bad--I market time through rebalancing of funds based on specific rules), and the problem with market timing in your position is the perpetual belief that a better price is right around the corner which keeps the money out of equities. IMO, you need to set rules for yourself on when this cash will be invested in equities if equity investments are the appropriate vehicle for this capital--DCA over the next 6 months is as good a rule as any.

2 minor tweaks:

1. I'd be using a total market fund instead (VTI) instead of an S&P 500 based passive fund to capture historic small cap outperformance and to (minimally) decrease concentration risk

2. I'd take my cash meant for equities, divide it into thirds, and buy a 1 month, 3 month, and 6 month t-bill with each third with the mental understanding that each third gets invested in equities on the day the T-bill matures.

What I'm most worried about in your situation though is how these investments compliment your TSP. If you have a bunch of money sitting in the C fund, I'd be using my non-TSP investments to capture different segments of the market and other low correlation assets. Piling more money into an S&P 500 fund when there is an equivalent S&P 500 index fund in the TSP with a better expense ratio makes me worry that there isn't a holistic understanding of your portfolio.

Don't listen to them. Sounds like you Dave Ramseyed things and are reaping the benefits.

NoahAg said:

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No house? Buy a house.
Single? Buy a duplex and rent the other unit.

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Yep. I'd buy a house and then 1-2 small condos in mountain/lake area(s).

proudaggie02 said:

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NoahAg said:

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No house? Buy a house.
Single? Buy a duplex and rent the other unit.

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Yep. I'd buy a house and then 1-2 small condos in mountain/lake area(s).

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Really. If you have no wife or kids (which are freakin expensive) I would put so much of it in real estate.

Yeah, do what your money manager says.

(I did the same thing).

Its all about time in the market over the long-term. Patience. Patience will be rewarded.

Money leaving stock market is going to bonds, CDs, treasury bills, etc. You can safely get 4 to 5% now.
As the fed increase interest rates, expect another this week, you will get more interest on cash instead of just sitting there for markets to come back up. When interest rates are paying less than 2 or 3%, go back into VTI, SCHD, etc.
Not financial advise, just part of what I do on my own. I don't pay financial advisors to tell to buy MF mutual funds.

Adverse Event said:

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Get some bitcoin, 1-5% of portfolio

If you've grasped cold storage, maybe more.

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Agree with this, but if you have concerns about BTC, you could also put 2 to 3% in MSTR stock. It's a bargain right now, and hard to imagine it doesn't hit $800 per share by early 2025.

Anything could happen over the next 4-months.

LMCane said:

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AirborneAg04 said:

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I wasn't trying to come across the wrong way, having money outside market participation is kind of a new thing for me so seeking advice helps.

I've been a no-coiner till very recently, but maybe a couple of percent into BTC would be prudent. My biggest concern is that, without real estate or other physical assets, I'm still vulnerable to a major stock crash. I do have some lead holdings before anyone asks.

Thanks for your contributions!

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You must come from family money if you have a million dollar portfolio after 20 years in the military.

why not just ask them for advice?

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There are a lot of enlisted that probably spend their monthly pay on motorcycles and cars and other fun stuff. But the military or services can be a lucrative path for many as well.

It's also a bit of a secret (or maybe not) that some number of service men and women exit with partial disability. This is an additional $1000-$1500 a month plus $10,000-$12,000 property tax exemption in Texas.

Family or friends have countless stories regardless of how healthy they are. My neighbor is a 45 yr old disabled veteran and does clean and jerks in his driveway. Him and his wife, who is an active service member ) own a $1M+ house (now anyway) and seem to do very well.

Don't hate the player.

You've said yourself you have no real estate. That would be my play right now.

Do you move every few years? Where would your dream retirement location be?

If real estate is for sure zero interest to you I would do exactly what you have been doing. It's working.

Honestly confused why you would you come to a forum and ask for advice when you have accumulated $1million in roughly 20 years in the military. Keep doing what your doing - no need to do anything different.

Dunno when the bottom will come but if you dca over the next few yrs you should be good to go.

Agree with those recommending diversifying into some real estate as well.

Yall ever heard of FTT?

If you want to get into real estate, I think there will be plenty of short sale or foreclosure opportunities coming up.