Portfolio Review for Retired Parents in EJ

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cadinkis
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Portfolio Review for Retired Parents in EJ

Post by cadinkis »

***OP was edited to clarify taxable/tax-advantaged accounts***
***OP was edited to add a little more information***
***OP was edited to correct taxable/tax-advantaged accounts***

This portfolio is not for me, but for my parents. You've probably seen in a few of my other threads that I'm relatively new to this, but I've learned a lot and what I have learned I want to use to ensure my parents are being taken care of in their retirement years. I've gathered as much information as I can from my father who is as uninformed as I was (I don't blame him, just stating facts).

-Dad retired in 2009 from Verizon and took a lump sum pension. They put my dad's pension into an actively managed portfolio while they were in FL.
-Mom retired in 2011 from a FL county public school system and receives a modest pension.
-In 2011, they moved to GA and moved the portfolio(s) to EJ.

While they are with us this week (my son's graduation), I took a look at his portfolio. It appears EJ is taking about 1% of their managed portfolio per month. Knowing what I know, I about lost it. I'd like your help with some things that I could pass on to him to see if it is worth them moving to a self-managed (or less costly managed) portfolio.

Emergency funds: Not what I would consider an EF (shown later)

Debt: $88k mortgage at 3.25% fixed

Tax Filing Status: MFJ

Tax Rate: 10% Federal, UNK% State

State of Residence: GA

Age: Dad is 73, Mom is 72

Desired Asset allocation: xx% stocks / xx% bonds (something we'll tackle later)

Portfolio size: $188k

Current retirement assets

Taxable (Mom inherited from Grandfather's passing and invested into this Cash Management account)
2.16% cash
1.44% iShares Core S&P Total US Stock (ITOT)(.03%)
2.67% SPDR DJIA (.16%)
1.44% American AMCAP F3 (FMACX)(.33%)
5.03% American Short Term TAX Ex Bond (SFTEX)(.33%)
1.16% American Smallcap World (SFCWX)(.65%
0.53% Microsoft (MSFT)
0.56% Proctor & Gamble (PG)
0.49% Visa (V)
0.72% Welltower Inc REIT (WELL)

Tax-Advantaged 1 (Mom's Traditional IRA - From a employer Life Insurance Policy)
.01% cash
2.33% iShares Core S&P Total US (ITOT)(.03%)
1.6% iShares Core Total USD (IUSB)(.06%)
1.07% Schwab US Agg Bond (SCHZ)(.03%)
2.31% Schwab US Large Cap (SCHX)(.03%)
1.12% Vanguard FTSE All World (VEU)(.08%)
1.64% Vanguard Extended Market (VXF)(.06%)
0.57% American New World F3 (FNWFX)(.57%)
0.53% TRP US Treasury Money I (TRGXX)(.23%)

Tax-Advantaged 2 (Dad's Traditional IRA - From employer lump sum pension in 2009)
4.29% cash
2.88% iShares MCSI EAFE (EFA)(.33%)
4.93% Select Secret SPDR Health Care (XLV)(.10%)
3.39% SPDR DJIA (DIA)(.16%)
7.64% American High Income Trust (HIGFX)(.30%)
8.04% Hartford Core Equity F (HGIFX)(.36%)
11.42% MFS Core Equity R6 (MRGKX)(.55%)
2.35% Chevron (CVX)
2.76% Comcast Cl A (CMCSA)
0.63% Duke Energy New (DUK)
0.65% Equity Residential (EQR)
1.93% General Mills (GIS)
1.98% Hershey (HSY)
2.34% Home Depot (HD)
1.94% Linde PLC (LIN)
0.94% ManuLife (MFC)
2.00% Pepsico (PEP)
1.30% Trust Financial (TFC)
1.09% Visa (V)

Bank:
2.5% Checking (0% APY)
3.54% Savings (0.2%)
1.36% CD 1 (5%)(Matures April 2024)
2.72% CD 2 (5%)(Matures April 2024)
Social Security/Pension:
Dad: $2000
Mom: $1600
_______________________________________________________________

Questions:
1. How difficult would it be for my dad (with some knowledge upgrades) to move his accounts over to Fidelity/Schwab/Vanguard and manage himself?

2. I've had him ask a series of questions to his EJ manager:
A) What do YOU invest your money in?
B) What are the fees you charge me for your management of my retirement portfolio?
C) How often do you charge these fees?
D) How much is that per month?
E) What value do your fees provide to me?
F) Why does my portfolio include so many assets (cash, stocks, bonds, ETFs, Funds) and not just low-cost index funds?
G) How many of my stocks/bonds/funds/ETFs are in Edward Jones proprietary assets?
H) Please send me a detailed list of all assets in all accounts you manage for me and my wife.
I) If I were to move my accounts into a self-managed account (Schwab, Vanguard, Fidelity), could I move the assets in-kind?
J) What would the taxes and penalties be (in dollar amounts)?

Thank you for the help as I try and help him. After we get these questions answered, the challenge will then be for my dad to consider if it is worth it to move from EJ.
Last edited by cadinkis on Sat Jun 10, 2023 7:00 pm, edited 3 times in total.
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Wiggums
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Re: Portfolio Review for Retired Parents in EJ

Post by Wiggums »

Since the portfolio size is only 188K, consider an all in one fund? The portfolio will be managed by the broker, but he won’t be paying a 1% or higher fee.
"I started with nothing and I still have most of it left."
mhalley
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Re: Portfolio Review for Retired Parents in EJ

Post by mhalley »

It wouldn’t be that difficult. The EJ rep might not know whether you can transfer the funds in kind, that would not be part of his job.
Don’t worry about getting the questions answered. The EJ rep has been trained on how to convince a person that wants to transfer out that they are crazy to do so. Just move it, contact your preferred brokerage and they will tell you if anything won’t transfer in kind.
Be sure to print out cost basis of taxable portfolio first. A quick glance doesn’t sho anything that won’t transfer in kind.
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FiveK
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Re: Portfolio Review for Retired Parents in EJ

Post by FiveK »

cadinkis wrote: Thu May 25, 2023 8:43 pm Tax Filing Status: MFJ
Tax Rate: UNK% Federal, UNK% State
Probably worth doing a draft of their 2023 tax return prior to selling taxable funds, in case they would pay a high marginal rate (e.g., see Taxation of Social Security benefits). Any of the Tax estimation tools that fit their situation should be OK for this.
1. How difficult would it be for my dad (with some knowledge upgrades) to move his accounts over to Fidelity/Schwab/Vanguard
Easy. Call the brokerage of choice and have them drive the process.
and manage himself?
Also easy if he can bring himself to "set it and forget it". Wiggums' suggestion for a single fund (just one example: VSMGX-Vanguard LifeStrategy Moderate Growth Fund) is worth considering.
2. I've had him ask a series of questions to his EJ manager:...
There are no good answers to those. The only plausible reason for staying with EJ is if he would otherwise panic sell at some point and the EJ rep could persuade him not to. But something like Personal Advisor | Vanguard could do the same thing for a lower cost.
will86
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Re: Portfolio Review for Retired Parents in EJ

Post by will86 »

It appears EJ is taking about 1% of their managed portfolio per month.
per month?
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cadinkis
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Re: Portfolio Review for Retired Parents in EJ

Post by cadinkis »

Probably worth doing a draft of their 2023 tax return prior to selling taxable funds, in case they would pay a high marginal rate.
That is a concern we have. I'll discuss that with Dad (he's lurking here...Hi Dad!).
Since the portfolio size is only 188K, consider an all in one fund? The portfolio will be managed by the broker, but he won’t be paying a 1% or higher fee.
Also easy if he can bring himself to "set it and forget it". Wiggums' suggestion for a single fund (just one example: VSMGX-Vanguard LifeStrategy Moderate Growth Fund) is worth considering.
I like the simplicity of a single fund , but maybe a US-only fund like VSMGX (looking). After comparing VSMGX to a three-fund portfolio (60/40), we'll have to see what Dad thinks. I think the move would be easy, but what we don't know is how the distributions would work if we self-managed. That's where we would need to talk with whichever brokerage my dad decided to go.
There are no good answers to those. The only plausible reason for staying with EJ is if he would otherwise panic sell at some point and the EJ rep could persuade him not to. But something like Vanguard Personal Advisor could do the same thing for a lower cost.
He won't panic sell. He's not very active in his portfolio.

Ultimately, I want my folks to be able to withdraw as needed to support themselves in retirement and avoid the costs that bring his portfolio down (or stop it from growing like it shoud). I told him EJ is like an ATM that is charging $130 every time he makes a withdrawal.

On his larger portfolio (Taxable 2), EJ is taking $130 as a "Program Fee" each month

And, when you look at the combined portfolio: 21 stocks and 17 funds/ETFs. That is crazy.
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cadinkis
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Re: Portfolio Review for Retired Parents in EJ

Post by cadinkis »

Okay, I need help so I do not confuse people. I've often been confused between the terms taxable and tax-advantaged.

The top two accounts are in Traditional IRAs, which will be/are taxed when distributions are made. No taxes were paid when they were established. I would consider these taxable because they are subject to taxes now (no more contributions are being made; distributions are being made).

The last account (mom's) was from inherited $ she got when my grandfather passed away. After the taxes on them, they put them into what I would assume is a Roth or a brokeraged account (the details of what I saw on their website was not clear). I would consider this account a tax-advantaged account, as no taxes will be taken when distributions are made.

Is this assessment correct? If not, I will edit the OP. (*it has been edited*)
Last edited by cadinkis on Fri May 26, 2023 9:14 am, edited 1 time in total.
nanosour
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Re: Portfolio Review for Retired Parents in EJ

Post by nanosour »

Wow, 21 stocks & 17 funds is unbelievable. And I bet the EJ FA tells dad he a fiduciary. If there is a Schwab office close by, I highly recommend setting up a meeting to have all accounts transferred in-kind. Meaning all assets will transfer over to similarly registered accounts. The process will only take about a week. Once everything is at Schwab, sell it all and pick one fund to rule them all. SWYDX (2025 Target Date Index Fund @ 46/54 AA), SWOBX (Schwab Balance Fund), or SWHRX (Schwab Target Fund 2025). Any of these would be good choices with Schwab.

Another excellent option would be to consider Schwab Intelligent Portfolio with monthly income sent to dad's checking account. This allows him to use his money instead of just sitting there and watching it go up and down with daily market mechanizations.

Whatever escape plan you use, you'll be much better off with EJ in the rearview mirror. I wish you and your dad well.
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Re: Portfolio Review for Retired Parents in EJ

Post by Stinky »

cadinkis wrote: Fri May 26, 2023 8:51 am Okay, I need help so I do not confuse people. I've often been confused between the terms taxable and tax-advantaged.

The top two accounts are in Traditional IRAs, which will be/are taxed when distributions are made. No taxes were paid when they were established. I would consider these taxable because they are subject to taxes now (no more contributions are being made; distributions are being made).

The last account (mom's) was from inherited $ she got when my grandfather passed away. After the taxes on them, they put them into what I would assume is a Roth or a brokeraged account (the details of what I saw on their website was not clear). I would consider this account a tax-advantaged account, as no taxes will be taken when distributions are made.

Is this assessment correct? If so, I will edit the OP.
Sorry, it you have it exactly backwards.

Traditional IRAs are called tax-advantaged, because there was a tax deduction going in. Accounts funded with post tax money are called taxable.

That’s just the way the commonly accepted naming convention works.
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FiveK
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Re: Portfolio Review for Retired Parents in EJ

Post by FiveK »

Stinky wrote: Fri May 26, 2023 9:11 am Traditional IRAs are called tax-advantaged, because there was a tax deduction going in. Accounts funded with post tax money are called taxable.
+1

A Roth account is yet another of the tax-advantaged ilk. There is a table on the 'Basic Terms' tab of the personal finance toolbox spreadsheet that has a summary. I don't know if there is something similar in the BH wiki.
Glockenspiel
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Re: Portfolio Review for Retired Parents in EJ

Post by Glockenspiel »

I would simply talk to someone at Vanguard and have them transfer the assets. All you need to know is account numbers. They will do the leg work for your parents.
HomeStretch
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Re: Portfolio Review for Retired Parents in EJ

Post by HomeStretch »

Have your parents asked for your help? If yes, does each parent have a durable power-of-attorney naming you (and each other) as an authorized agent so you can legally assist them and be recognized by their financial institutions?

With a modest portfolio of $188k, they would be better off financially to eliminate the 1% EJ advisor fee as well as simplify their portfolio to a couple lower-cost holdings.

Are they comfortable making transactions online via computer?

While your parents are physically at your house, work with them to open online accounts at Fidelity or Schwab (whichever has a local office) and to initiate the account transfers. Help them set up:
- your/their agent access
- account beneficiaries as needed
- link to their bank account
- specific cost basis method for the Taxable account
- possibly Taxable account’s dividends to be automatically reinvested unless they need the dividends to go to the settlement account for spending
- order debit card or checks for the Taxable account, if needed

Be sure to download the EJ account statements and Taxable account’s cost basis info in case they are locked out of EJ online due to the transfer.

If they are of RMD age, check whether they have taken their 2023 RMDs yet in the two EJ IRAs. Download the 12/31/22 statements as the new brokerage won’t have the info to determine the 2023 RMD $.

Does your parents’ retirement income of $3600/mo cover all expenses including income taxes, healthcare and periodic expenses such as a new car? Does the pension income receive cost-of-living adjustments?

Your parents have a modest portfolio. Most likely a modest equity allocation of 30-40% equity is appropriate to preserve their principal but keep up with inflation.

As a long time Vanguard customer, I don’t recommend Vanguard for new accounts any more. They don’t have local offices and have service issues imo. There have also been recent forum threads on Vanguard imposing undisclosed long holds on assets transferred into new accounts. I ran into issues last year with my incapacitated parents’ Vanguard accounts that I was a long-time agent for that necessitated my moving their accounts to Fidelity. Vanguard is not terrible but I think Fidelity or Schwab are a better choice these days.

Fidelity and Schwab brokerage accounts offer US Treasuries and brokered CDs with competitive rates. It can help simplify their financial matters by eliminating separate bank CDs that you/your parents need to manage.
delamer
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Re: Portfolio Review for Retired Parents in EJ

Post by delamer »

How long did your father work at Verizon?

I’m not sure which IRA contains the rollover from that pension, but the amount seems low.
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cadinkis
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Re: Portfolio Review for Retired Parents in EJ

Post by cadinkis »

After a day, his EJ Advisor responded to some questions we asked with sufficient answers and even called him (ghosted). We figured we got him spooked. Just wait...!
With a modest portfolio of $188k, they would be better off financially to eliminate the 1% EJ advisor fee as well as simplify their portfolio to a couple lower-cost holdings.

While your parents are physically at your house, work with them to open online accounts at Fidelity or Schwab (whichever has a local office) and to initiate the account transfers. Help them set up:
- your/their agent access
- account beneficiaries as needed
- link to their bank account
- specific cost basis method for the Taxable account
- possibly Taxable account’s dividends to be automatically reinvested unless they need the dividends to go to the settlement account for spending
- order debit card or checks for the Taxable account, if needed

Be sure to download the EJ account statements and Taxable account’s cost basis info in case they are locked out of EJ online due to the transfer.
Incredibly helpful post! Thank you so much. I had Dad read over it and explain what we needed to do and we called Fidelity yesterday and set it all up. It was very easy to create a Cash Management Account (the Taxable account listed in the Portfolio), a Traditional IRA for Mom and one for Dad. Requesting the transfer was also very easy, as the gentlemen walked us through it over the phone. Everything looks like it will transfer in-kind, so no liquidation required and no taxes (Yet.)

One thing they will need to do when they get back home is execute Powers of Attorney for themselves for each other's IRAs so they can see them.
If they are of RMD age, check whether they have taken their 2023 RMDs yet in the two EJ IRAs. Download the 12/31/22 statements as the new brokerage won’t have the info to determine the 2023 RMD $.
Mom just started RMDs last year (turned 72 in November), and Dad was doing it for a year (73 in November). I found the 2023 RMD Table from the IRS, and I found the step-by-step process for setting theirs up with Fidelity.
Does your parents’ retirement income of $3600/mo cover all expenses including income taxes, healthcare and periodic expenses such as a new car? Does the pension income receive cost-of-living adjustments?
This is the second battle: A Budget. Dad isn't interested in a budget, which I can't understand (looking at a Dave Ramsey budgeter here). Maybe without the reliance of an expensive ATM (EJ Advisor), he'll need to figure out what their NEEDS/WANTS are and plan a little. We'll see.
Your parents have a modest portfolio. Most likely a modest equity allocation of 30-40% equity is appropriate to preserve their principal but keep up with inflation.
This is the homework I gave to him to educate himself on how he wants to allocate their portfolio. I will probably recommend they go with a 32/8/60 portfolio in three low-cost index funds:
Fidelity Total Market Index Fund (FSKAX .015%)
Fidelity International Index Fund (FSPSX .035%)
Fidelity U.S. Bond Index Fund (FXNAX .025%)

I am looking at these vs. a Target Date Fund because of the costs.
As a long time Vanguard customer, I don’t recommend Vanguard for new accounts any more. They don’t have local offices and have service issues imo. There have also been recent forum threads on Vanguard imposing undisclosed long holds on assets transferred into new accounts. I ran into issues last year with my incapacitated parents’ Vanguard accounts that I was a long-time agent for that necessitated my moving their accounts to Fidelity. Vanguard is not terrible but I think Fidelity or Schwab are a better choice these days.

Fidelity and Schwab brokerage accounts offer US Treasuries and brokered CDs with competitive rates. It can help simplify their financial matters by eliminating separate bank CDs that you/your parents need to manage.
We ended up going with Fidelity over Schwab because they are transferring all TDAmeritrade accounts over to Schwab and wanted to do this soonest. I like TDAmeritrade for ours, so I would have been fine with it, but didn't want to add any confusion or delay in the setup. Their accounts should be fully setup by 5 June, at which point I will FaceTime with Dad to move things around and simplify his portfolio. Another homework assignment I have for him is to figure out if they WANT/NEED the Cash Management Account. We discussed cashing it out (depending on Capital Gains Taxes) and putting some into checking and some into CDs at his local bank (5% APY).

Overall, it was a good experience for him to see how easy it was to switch. Again, thanks so much with the help. Continue to do so!
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Re: Portfolio Review for Retired Parents in EJ

Post by cadinkis »

After some more good discussions (with my Mom contributing as well), it looks like they want to go with the following AA:

Dad's IRA (62.3% of portfolio) will be 30/70 in FXAIX/FNSOX.
Mom's IRA (11.3%) will be the same.

For the Cash Management Account (16.3%), they are going to use that account to fund vacations and the like. The plan is to find some good ETFs that don't have redemption penalties so they can move money between the ETFs and Cash if they need to transfer funds into their local bank. They use a Credit Card for most purchases to get the $ rewards, and they are going to continue with that and pay the balance at the end of the month from their local bank. We've discussed the option of using the CMA as a checking-like account (with the 2.6% APY Fidelity has now), but they'd rather use their local bank for paying for things.
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Re: Portfolio Review for Retired Parents in EJ

Post by cadinkis »

Okay, it looks like Mom and Dad are good with setting up a 90/10 AA (ITOT/SHV) in the CMA.
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Re: Portfolio Review for Retired Parents in EJ

Post by HomeStretch »

Keeping a local brick-and-mortar bank for checking, ATM, cash deposits, etc. is fine. Consider using the CMA rather than individual banks for CDs (or US Treasuries) for simplicity.

If your parents will be drawing regularly on the $31k CMA funds invested 90/10 for short-term goals such as vacations, etc., it may create short-term capital gains. It also adds complexity/time for withdrawals as they will need to allow a couple days to sell, settle and transfer to their bank. Are they comfortable doing this online?

The new overall asset allocation for your parents’ $188k portfolio looks to be about 37/63 (equity/fixed income) which is reasonable and should help the portfolio keep up with inflation.
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Re: Portfolio Review for Retired Parents in EJ

Post by niagara_guy »

A t-ira (traditional IRA) is a tax advantaged account. If he made contributions to a t-ira and did not deduct the amount from his taxes in the year he made the contribution (or could have been made for the prior year if done before April 15th) then it was an after tax contribution. Form 8606 should have been filed for that tax year and all tax years when contributions were made. Search bogleheads (upper left corner of main page) for 8606 and you will get hits.

I don't think this will have an impact on moving the accounts, but I would keep the records that show the contributions if he made after tax contributions to a t-ira.

It's not clear to me if he made after tax contributions to a t-ira from your post.

A taxable account is an account that's not a retirement account, like a checking account, a savings account or a brokerage account that's not a retirement account.
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Re: Portfolio Review for Retired Parents in EJ

Post by prairieman »

It’s truly a thankless task. We went through it with my wife’s mother (similarly complicated EJ portfolio) and my dad (self managed market timer/day trader). After talking at length with each, they just kept doing what they had been doing (waste of my time and energy). Wife’s mother did better than my dad and worried far less. It was much easier unwinding her portfolio once she passed away, too, since the stepped up basis meant there were no tax consequences for transferring it all to Vanguard and selling it all once there. It might not be the worst thing for family harmony and financially just to let it go. For example, what happens if there is a bad year once your parents reinvest based on your advice?
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cadinkis
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Re: Portfolio Review for Retired Parents in EJ

Post by cadinkis »

cadinkis wrote: Tue May 30, 2023 6:32 am Okay, it looks like Mom and Dad are good with setting up a 90/10 AA (ITOT/SHV) in the CMA.
Actually, it looks like they are going to keep about $4k in cash (or in a MMF) and the rest of the CMA in the 90/10 ETF above. Thinking of going with those instead of mutual funds because of the ease of selling in the event they need more cash.
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Re: Portfolio Review for Retired Parents in EJ

Post by cadinkis »

Update to the Transition:
Most of the assets cleared the transition from EJ to Fidelity. A few of them, mostly mutual funds, needed to be liquidated. I'm sure it's because those funds were held by EJ only. That's a little frustrating, as we asked that specific question and the EJ advisor claimed my folks didn't hold any proprietary funds. Another thing he didn't mention when we asked was the $95 "account termination" fee he charged each account. That was another question we asked he answered in the negative. To that, my dad did not care, as it was just another indication that they will be better off transitioning to DIY. It is unfortunate that they might have to pay capital gains taxes on those profits of what was cashed out. I talked with him yesterday and the plan is as follows:

Dad's Traditional IRA:
Sell all stocks/ETFs/Funds.
Withdraw the remaining RMD for the year (< $1k)
Take the rest into an AA of 30/70 (FXAIX/FNSOX).

Mom's IRA:
Same as Dad's (Mom's RMD will also be < $1k)

Cash Management Account:
Sell all stocks/ETFs/Funds.
Keep about $4k in SPAXX.
Put the rest into a 90/10 (ITOT/SHV).
*of note* They got their debit cards for the CMA before Fidelity began the sweep over from EJ.
HomeStretch
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Re: Portfolio Review for Retired Parents in EJ

Post by HomeStretch »

Ask Fidelity to reimburse your dad for the EJ account termination fees as they usually will reimburse fees.

How much will your parents need to withdraw from the CMA each year? If > the $4k you plan to hold in SPAXX, consider holding 1 year of planned withdrawals in a money market fund in the CMA to make the transfers from CMA to bank easier and faster for your dad. Each year, replenish the money market fund to one year. SPAXX is a good MMF. If they are in a state with income taxes, FDLXX may result in a higher after-tax yield.
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cadinkis
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Re: Portfolio Review for Retired Parents in EJ

Post by cadinkis »

Ask Fidelity to reimburse your dad for the EJ account termination fees as they usually will reimburse fees.
I told Dad. He said he's going to ask.
How much will your parents need to withdraw from the CMA each year? If > the $4k you plan to hold in SPAXX, consider holding 1 year of planned withdrawals in a money market fund in the CMA to make the transfers from CMA to bank easier and faster for your dad. Each year, replenish the money market fund to one year. SPAXX is a good MMF. If they are in a state with income taxes, FDLXX may result in a higher after-tax yield.
Unsure if they will need to withdraw any from CMA. That's another discussion we are continuing to have. They both are getting SS and my mom gets a small pension. In previous conversations, I think those three income streams, along with their RMDs, they may not need to have any cash requirements besides the vacation planning they do. That's why I want them to keep it in SPAXX. I'll look at FDLXX.

Also, a bigger question, I've been re-thinking the 30/70 AA we were planning on putting their IRAs in. Watching some videos from Rob Berger (mainly about the 4% Rule) lead me to believe 30% in Equity may be too low. So now I'm considering recommend they go with a 60/40 or a 50/50.

Thoughts?
HomeStretch
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Re: Portfolio Review for Retired Parents in EJ

Post by HomeStretch »

cadinkis wrote: Wed Jun 07, 2023 7:57 am … I've been re-thinking the 30/70 AA we were planning on putting their IRAs in. Watching some videos from Rob Berger (mainly about the 4% Rule) lead me to believe 30% in Equity may be too low. So now I'm considering recommend they go with a 60/40 or a 50/50. …
Asset allocation is a personal decision.

For a small portfolio of $188k that’s needed for annual withdrawals or to cover periodic expenses such as a new car, major home repair or possibly LTC in the future, I personally would not have an equity allocation of more than 30%-40%. Capital preservation would be my primary goal.
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