[USER]

I have about 20k sitting in cash in my Roth. Looking for low cost fees to invest. I’m 54. Looking for a 5-6 year timeline.

I have about $12k in VTI. What are some options

[Jule]

What’s wrong adding that other $20k to VTI? That’s what I’d do.

[Derek]

In Fidelity….you can just leave it as Cash and it will grow 4% a year…if you want an option to not lose any principal.

[Matt]

VTI (only) is about the best 1-fund portfolio an investor in the Accumulation Phase can get. From there, 2-Fund portfolio would add a bit of Non-US (International) Equity…

like VXUS, to no more than global cap weighting of 30%… even 10% may help.

Beyond that, “small cap value” is the next Factor (up to 5%, maybe with shifting from VTI to VOO for Large Cap Growth)… but that’s getting more complex without all that certain a gain.

VTI (with or without VXUS-like) could be very appropriate to carry to about 7 years prior to retirement… at which point Kitces Bond Tent or Frank’s “Golden Ratio” Risk Parity portfolio get planned and executed.

[Christopher]

For shorter timelines, you may want to consider only investing a portion in stocks, and the rest in bonds or cash.

If you need it to grow more, you’ll need to take on more risk, and then it’s a matter of risk tolerance.

[Author]

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