What would be a good addition to my portfolio of investments?
I currently have the following assets:
* $74,000 in 4 individual corporate bonds (Sara Lee, Goldman Sachs, Selective Insurance Group, Tenneco Packaging).
* About $5,000 in my employee 457b and Roth 401K.
I will be contributing $34,000 a year to these plans, the maximum allowable.
This money is allocated as follows:
20% Bond Index Fund
20% Stable Value Fund
25% Large-Cap Index Fund
10% Mid-Cap Index Fund
10% Small-Cap Index Fund
15% International Index Fund (All-World ex-US)
* About $25,000 idly sitting in my local bank earning virtually no interest.
I will need about 5k of this money in my savings and checking accounts at all times. Where should I invest the rest?
I was considering buying another corporate bond with a minimum yield of 6%.
Or maybe I could get a REIT index fund?
What about purchasing one or more individual stocks, like Berkshire Hathaway, to round off my portfolio?
Should I do a little of all these?
What do you think would provide diversification and make my portfolio more dynamic?
FYI- I am 42 years-old, and I want to retire in 8-10 years, possibly by 50, but no later than 52.
My risk tolerance is moderate.