ieee488 wrote:My father died last year.
As it stands now, my mother gets SS and my father's pension, so she does not need income each month.
The issue is that almost 3/4 of her assets excluding the house are in stock mutual funds and nearly 60% of that is in T. Rowe Price Spectrum Growth Fund.
It looks like she is much too heavily weighted in stocks for a woman of 70. She is looking to do something with the Spectrum Growth.
Should my mom buy a bond fund?
If so, should she stay with T. Rowe Price? If so, which fund?
If not, which fund at Vanguard?
If not a bond fund. What?
Thank you in advance for your thoughts.
You don't say how much money is involved or whether it's a taxable account. You won't get as useful comments without providing that information.
Since the income doesn't seem to be needed, you can be more equity oriented than if it was. However, some people don't like seeing their balance fluctuate, even if they aren't spending it.
As a long-time Spectrum Growth shareholder, I can tell you that although it's a fund-of-funds, my impression is that TRP managers are more subject to "group think" than VG's outsourced managers are. So, when they win (as in recent years), they all tend to win. When they lose (as they did when I held the fund), they really take a beating.
However, you don't want to move a large sum of money and have it out of the market for even one day. So that's a logistical concern. I could hedge my move from TRP to VG because I had to cash to do that at the time, but I certainly couldn't now.