This is the second time I am asking for help with my mother's portfolio. I chose to start a new thread since the last one was over a month ago and I did not get a very good response (as Laura pointed out it may have been because I used tickers only). Also, my questions have evolved.
I would appreciate general advice on the suggested portfolio below.
Additionally, I have specific questions as follows:
1)I hate bonds! I hate tips. I would take stock any day. Back to reality...I am leaning towards doing what Merriman advises in fund adice which is
- Vanguard Intermediate Term US Treasuries (VFITX)
Vanguard Short Term Treasuries(VFISX)
Vanguard Inflation Protected Securities (VIPSX)
3) You will see some "legacy" funds listed (any nonvanguard fund is a fund that I have not sold yet and am thinking of keeping, either because it has a back load fee or actually looks like a good fund.) My question is should I actually bother keeping these. I would really like to simplify. See specific comments I have made below next to these funds.
Here is some background:
- Mom has a trust fund with Northern in which she has no say in the invesments. She also has an IRA and a small taxable account. I would describe her total portfolio as small to modest and in the low 6 figures.
She owns her condo with some debt but payments are manageable.
She is in the 15% tax bracket.
She recieves Social Security and is taking distributions of 5% of her total investments out
- 60/40 Equities/bonds (more on that below)
Of the Equities 70% in US and 30% in Foreign
Both the US and Foreign will then be split 50/50 into Largo Co and Small Co
Each category is weighted toward 30%value.
Figures below do not include cash in Money Mkt fund of about 6% of her total portfolio or 2 years of her cash needs.
Northern Trust She cannot touch these. Perhaps this is too much information, but thought I would list in case it helps.
- 0.8% NOEMX Intl Emerging
12.5% NOFIX Fixed Income
1.2% NGREX Global Real Estate
3.4% NOGEX Growth Equity
3.4% NHFIX Hi yield Fixed
2.9% NOIGX Intl growth
3.1% NOLVX Large Cap Value
0.5% NMIEX Intl equity
0.7% NMMCX Mid cap
0.5% NMMSX small cap
- VMMXX Vanguard Prime MMK
4.4% VFINX Vanguard 500
2.6% NAESX Vanguard Small Cap Index
- VMMXX Vanguard Prime MMKt
2.6% VFINX Vanguard 500 Index
1.3% NAESX Vanguard Small Cap Index
3.6% VIVAX Vanguard Large Cap Value Index
4.4% VISVX Vanguard Small Cap Value Index
2.6% VDMIX Developed Markets Index or
0.0% VTRIX International Value Fund-(these both appear to be concentrated in value and so I could use some advice in which one to go with.)
1.3% VEIEX Vanguard Emerging Markets Stock Index
2.6% Small Cap Int'L ?? (I am looking for help in choosing a fund or two to fill this gap.)
2.7% DODFX Dodge & Cox Internatl Stock Fund (This is one fund I definitely want to keep.)
0.6% CWGCX American Funds Capital World G/IC (This fund and the one following appear to be pretty good funds. They also fill some gaps in the international allocation.)
2.3% SCWFX American Small Cap World Class F
3.8% IGBAX ING Global Real Estate CL B (Back load fee of 6% ramping down 1% a year. Should we just bite the bullet and sell this? The problem is she has a REIT ...see below...that she will take an even bigger hit on if we redeem it and so perhaps we should sell this one? I would prefer to decrease her REIT allocation)
2.8% KSCVX Keeley Small Cap Value FD Inc (This looks like a good fund.)
3.8% RIMSX Ranier Small Mid Cap (Again this looks like a good fund but concentrated in growth. Perhaps because it is closed to new investors I feel relunctant to sell.)
3.9% VBMFX Total Bond
4.1% LSGLX Loomis Sayles Global Bond Retail (I will probably swap this for a vanguard fund, but would appreciate any comments.)
16.5% Unidentified (Help, see question above regarding what to do with bonds.)
- 5.2% Wells Capital Reit II (not publicly traded. I would love to dump this but she will take a 9% hit decreasing 1% per year. I cannot decide if I should dump this or the ING Global real estate reit above. My preference is to get rid of this one and take the hit now and get it over with?)
I sure hope you have not fallen asleep by now.