One of my relatives has $1.3 million in cash and no retirement accounts. She's retired, age 74, in very good health, and could easily live to age 90 or even 100. She's now interested in putting some portion (maybe $800K) into Vanguard mutual funds. Her primary goal is to help keep the value of her money from being eaten by inflation and to have money to live on.
I've been asked to recommend a mutual fund allocation. Do you think either of these would be reasonable? Or is there a better allocation?
First option
60% in VBTLX (Total bond market)
30% in VTSAX (Total stock market)
10% in VTIAX (Total international stock)
Second option
25% in Target Retirement Fund 2025
25% in Target Retirement Fund 2030
25% in Target Retirement Fund 2035
25% in Target Retirement Fund 2040
Thank you!
Submitted July 29, 2021 at 07:17AM by Vermont_529 https://ift.tt/3l8CIt1
