I like to own broad-based low cost index funds in my investment accounts (including taxable brokerage) and they're pretty tax efficient, although you can also go with BRB-K if you don't want any dividends. The Bogleheads wiki page on tax-efficient fund placement is a pretty good read.
How much cash to keep in your portfolio depends on your job security and risk tolerance. I'm not a fan of bonds, so I hold cash in lieu of bonds, and try to keep most of my money working for me but maintain enough cash to survive through a typical recession (usually 1-3 years). Currently my cash reserves represents around 5% of my net worth, and that helps me stay aggressively invested with the rest of my portfolio. |