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Preservation Portfolio - Taxable
ava551
02-24-2006, 7:19 PM | Post #168660
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Dear Diehards,
My mother-in-law just passed away and I'm in the process of helping my father-in-law get the investments in order. He has no mutual fund investment knowledge whatsoever and sadly, always gave her a hard time about her meticulous book keeping and daily reading of the Wall Street Journal. He is now quite humbled by what she has amassed. It was always expected that she would outlive him.
My father-in-law is 79, not in the greatest shape and will likely move into an independent living facility until assisted living is needed. No debt, owns the house (which will be sold) and will need to supplement his Soc Sec and pensions with no more than 4% of his investments.
The bulk of the investments are with Vanguard, all taxable and I'd like it to stay that way and make it a very simple tax efficient preservation portfolio that can be put on auto pilot for the most part. Very low tax bracket.
Current allocation very aggressive: 80% stocks, 20%cash
Current portfolio and percentages:
Vanguard Asset Allocation 14%
Wellington 13%
Windsor II 13%
T Rowe Price New Era 12%
Managers Value 6%
Accessor Growth 5%
Preferred Large Cap 4%
Individual stocks:
Lowe's Companies 9%
Merck 5%
2 CD's rounding to basically 20%
The individual stocks will need to be sold and the funds streamlined possibly into municiple bonds fund with 2-5 years of income in Prime MM. Maybe with the addition of 20% stocks (TSM?) I'd think 15/60/25, stocks, bonds, cash or even more basic, 70/30, bonds, cash.
She was certainly a value investor - should I keep Wellington or maybe use Wellesley income for dividends? I'm just not confident in my knowledge of tax consequences and dividends during retirement in a low tax bracket environment. Any words of wisdom would be appreciated.
Lisa
Originally posted in thread: 48136
Topics
muni bond
T Rowe Price New Era
tax efficient
Windsor II
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