Investing for older relative

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newseahorse
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Joined: Sun Nov 04, 2012 11:36 pm

Investing for older relative

Post by newseahorse » Sun Apr 14, 2019 9:05 pm

Hi,
I am trying to bogleify a 70 year old relative's investments. Currently invested in individual tickers.
Has some risk tolerance so I was thinking 60% stock index and 40% bond index with stock bucket further split into 60% domestic and 40% international.
Does that sound about right?

thanks!

123
Posts: 4485
Joined: Fri Oct 12, 2012 3:55 pm

Re: Investing for older relative

Post by 123 » Sun Apr 14, 2019 9:16 pm

Whoa, whoa, whoa

We need a lot more information to advise whether any asset allocation is within the realm of reason for any individual.viewtopic.php?f=1&t=6212

The allocation for the Vanguard Target Retirement Income fund is 30/70 stocks/bonds. The asset allocation for any individual depends on their ability to accept risk which largely depends on the age/income/expenses/assets. Some individuals can correctly tolerate no risk whatsoever whereas others can. A middle-of-the-road retirement allocation is likely 50/50 assuming the individual has the assets to tolerate that high of a stock allocation.

When you enter into reorganizing the finances of anyone you open yourself up to blame/responsibility for the market circumstances that result.
Last edited by 123 on Sun Apr 14, 2019 9:21 pm, edited 1 time in total.
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Wiggums
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Re: Investing for older relative

Post by Wiggums » Sun Apr 14, 2019 9:18 pm

123 wrote:
Sun Apr 14, 2019 9:16 pm
Whoa, whoa, whoa

We need a lot more information to advise whether any asset allocation is within the realm of reason for any individual.viewtopic.php?f=1&t=6212
I agree

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FiveK
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Re: Investing for older relative

Post by FiveK » Mon Apr 15, 2019 1:28 am

newseahorse wrote:
Sun Apr 14, 2019 9:05 pm
Does that sound about right?
As others have noted, more information is needed before could say that (or any other suggestion) is "about right."

There is however at least a decent chance that it is indeed a defensible choice. Whether it (or any other choice) turns out to be "good" will be known only in hindsight.

RadAudit
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Re: Investing for older relative

Post by RadAudit » Mon Apr 15, 2019 3:47 pm

newseahorse wrote:
Sun Apr 14, 2019 9:05 pm
I am trying to bogleify a 70 year old relative's investments.
Has she asked you for your help? And, why?
FI is the best revenge. LBYM. Invest the rest. Stay the course. - PS: The cavalry isn't coming, kids. You are on your own.

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arcticpineapplecorp.
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Re: Investing for older relative

Post by arcticpineapplecorp. » Mon Apr 15, 2019 7:07 pm

please repost according to the following guidelines:

viewtopic.php?t=6212

otherwise, it's garbage in, garbage out.
"May you live as long as you want and never want as long as you live" -- Irish Blessing | "Invest we must" -- Jack Bogle

inbox788
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Re: Investing for older relative

Post by inbox788 » Mon Apr 15, 2019 8:29 pm

newseahorse wrote:
Sun Apr 14, 2019 9:05 pm
I am trying to bogleify a 70 year old relative's investments. Currently invested in individual tickers.
Has some risk tolerance so I was thinking 60% stock index and 40% bond index with stock bucket further split into 60% domestic and 40% international.
Does that sound about right?
Depends on the tickers. List the tickers and cost basis/current values (and purchase dates if recent -- less than 12 months ) if you want to figure out tax consequences. The sky is blue.

Some grasses grow faster in the summer. If the tickers are individual large cap stocks, which is sometimes what that means, or some may call blue chips, then buying 100% total stock market is a way to diversify and reduce individual stock risk. That in itself is something that is generally good. Cool weather is good for some grasses. A 60/40 stock/bond with 60/40 may be appropriate for some 50 year old investors or other 70 year old investors depending on their individual situation. Why invest like a 50 year old? Conservative or aggressive? The 50 year old or the 70 year old?

Sounds about as clear as mud. Time to fertilize the grass for summer growth.

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