$100k Portfolio Construction ideas - anyone?
Hi, I have been asked by my wife to manage her $100k worth of cash(!) in her bank account savings.
1) Can someone give me an idea of a $100k portfolio construction / asset allocation for this huge amount of unmanaged cash?
Any ideas / insights / questions that I should ask myself are welcome.
Our family background for this:
- She doesn’t have a return target, but would be upset if there was a 10+% loss. She would be more than happy with a near-5% return. (Please feel free to 2) convince us to change our risk tolerance, unlike the ethics test…)
- We don’t know about an investment horizon, we just want to start investing early. She is considering going to an MBA once the saving gets $200k, so there is a chance that we might use it in about 2-3 years if that happens.
Given this background and my limited knowledge in money managing (Took CFA Dec Level 1, Real Estate investment analyst), I need some ideas for this.
Currently I’m thinking on a fully passive and diversified portfolio, all passive ETFs - is this going to be a disaster?
- 30% S&P500
- 20% emerging country equities
- 20% developed country bonds
- 10% for emerging countries bonds
- 20% for developed REITs
*I am actually a Japanese living in Japan, and it’s highly costly to invest in individual foreign stocks - the realistic option is an investment trust or ETF, which the management fees are about 30bps if they are passive.
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