I have recently been reviewing this site and have found it very informative. My new recent mother-in-law has asked for assisted in managing her portfolio. Any suggestions or advice you could provide would be greatly appreciated. Her goal is to make as much income as possible with some possibility of growth.
Emergency funds: Included in the taxable cash below - $50,000 desired liquid.
Debt: No debt, house is paid for.
Tax Filing Status: Widow
Tax Rate: TBD – Did Not Know – Only SS and RMD from IRA - $1,400 per month(?)
State of Residence: California
Her Age: 82
Desired Asset allocation: TBD – 25%/75% Stocks/Bonds
Desired International allocation: TBD
Current retirement assets
$181,000 – (Cash held in savings or money market account)
$10,000 - individual stock
Mutual Funds: $168,840
55.8 % - $94,256 - Fidelity Cash Reserve (FDRXX)(.34)
16.9% - $28,549 - Fidelity GNMA Fund (FGMNX)(.45)
12.9 % - $21,756 - Franklin CA Income Tax-Free A (FKTFX)(.57)
12.0 % - $20,279 - Vanguard 500 Index Inv (VFINX)(.17)
IRA - $106,503
13.6% - $14,485 - Fidelity Cash Reserves (FDRXX)(.34)
1.8% - $1,936 - Fidelity Spartan Index (FUSEX)(.10)
63.7% - $67,816 - Fidelity Mid-Cap Stock (FMCSX)(.85)
3.1% - $3,306 - Fidelity Magellan (FMAGX)(.53)
2.4% - $2,600 – Fidelity Growth & Income (FGRIX) (.71)
9.8% - $10,460 - Franklin U.S. Government Securities (FKUSX)(.72)
5.5% - $5,900 – Individual Stock
Social Security - $2,200 per Month
She does not have a concept of AA. I believe she should be 25%/75% Stocks/Bonds. She appears to have too much cash and improper AA i.e. high Mid-Cap holdings etc. I believe she should be invested in something similar to the Vanguard Target Retirement Fund (VTINX).
Thank you for your assistance.