r/TheMoneyGuy•
Gholgie

33M, I have $500k, all in SP500. Thoughts on diversification & future allocation?

I would love to hear the thoughts of the Money Guy audience on my situation. I'd consider myself to be in a very good spot financially for my age, but as I go forward, I would like to start the process of diversifying away from the SP500. Although the recent dip, having to do with the tariff situation, was brief, it still rattled me a bit. Not so much because of the drop, but more so because of the realization that I have all of my eggs in one basket. To top it off, although I don't think I will be laid off, there were a few rounds of layoffs that occurred at my company in the past year, and I don't want to be caught with my pants down. I know my feelings are normal given the situation, but the spectre of it sometimes still hangs over my head. There may still be future layoffs, but official internal messaging from the higher-ups remains uncertain. At the very least, I would rather err on the side of caution.

Here is my info at a high level:

-I have 4-5 months in an emergency fund
-$350k in a 401k
-$70k in a Roth IRA
-$30k in an HSA
-$50k in a taxable brokerage

-I make $135k/year pre-tax
-I'm single, no kids
-I contribute ~$50k/year in investments
-Housing(mortgage + HOA fees) is ~$1.7k

Given the rounds of layoffs(that have stopped for now), I began contributing more to my taxable brokerage to have more non-retirement money to pull from, just in case. This was something I had been thinking about for maybe 6 months before, but the start of layoffs kicked my plan into gear. I am still contributing the minimum to receive my maximum company match, maxing out my Roth IRA & HSA, and the rest goes to the taxable income.
My major concern is that I think bonds just aren't a great investment. Is there something that is a tad more lucrative that you think I could pursue while still diversifying my investments? I was thinking something along the lines of US Small Cap, International Funds, REITS, Dividend investments, etc.
Also, all of my accounts, but my HSA, are with Fidelity. I have been FOO-ish(maybe foolish), so I am half expecting to get flamed in the comments for not following it to a T. I've been watching the Money Guy Show for a long time, but haven't always followed their advice.
Please give me your advice if you think of anything that may help me out. All thoughts are appreciated :)

Posted Jul 6, 2025, 7:37 PM UTC

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