Sorry if this is long, but hard to write your life’s story in one or two paragraphs. So, if you could render some opinions, I’d like to hear what you might think a New Portfolio for someone like me at this juncture in my life would look like. I am 67 yrs. old (and not in good health) My investment will all be in a taxable accounts, as I started an IRA late in life and my money comes from Real Estate investments sold. As mentioned before my only other source of income is from social security. So I need income. I especially need income for my son when I am gone as he has some disabilities and doesn’t work, but not eligible for disability cause of income from me. (plus a little of his own about $250,000 from his father’s death) He is 29 yrs. old for the record.
My introduction into the stock market in Dec 07, has left me a little shell shocked and immobilized and afraid to lose more, so I am having a difficult time deciding what to do. I have to make this money last for a very long time, and still be guaranteed income for him, which is not an easy feat. I am shying away from advisors at this point, and would like to come up with something myself, and then leave instructions for my son to see a “fee based” advisor that would help him do whatever rebalancing is needed each year.
I invested $500.000 with an advisor just before the market crash, of which $250,000 was lost in bankruptcies. The remaining money (now around $300,000) is in very high risk preferred stock and a couple of bonds. A good number of these securities are still down 50 -60%. They are generating about $30,000 (before advisor fee- so net about $27,000 a year in income if there are no more bankruptcies)
I invested myself another $170,000 in income producing stocks, some preferred stock, MLP’s, utility stocks, with a smattering here and there of some other decent large cap dividend stocks. That is generating about $9,000 a year. I am down about $4,500 on that mix of stocks to date. Besides this, I have about $900,000 in cash left. I want to keep about $300,000 liquid in CD ladder and money market, so that leaves me $500,00 left to invest.
I would still need more income for my son to live on after I’m gone, maybe $10,000 more, as the money with the advisor is shaky. On the other hand, they may recover over time. Who knows? So I figure I have my high risk, high income pool so I must be careful with the remaining, and yet have some additional income and growth potential.
That Is why I gravitated to dividend stocks myself for safety with the possibility of some growth. The CD and Money Mkt funds right now are so pitiful, that the amount of income from them at this juncture is negligible.
I still have a small house in Phoenix, Az. that needs to get sold, but the market there is the #1 hardest hit market in the country. (up to 60% losses) So that house will probably only to sell for $150,000. About what I paid for it 12 years ago and I have put considerable money into remodeling as well.
So there you have my life story laid out bare before you. (a little humiliating) But I have been reading this board for a couple of years now, and I know there are some intelligent investors on here. Sooooo…….. What would you do in my shoes? (Besides telling me to fire the advisor. I know one of you will say that)
My introduction into the stock market in Dec 07, has left me a little shell shocked and immobilized and afraid to lose more, so I am having a difficult time deciding what to do. I have to make this money last for a very long time, and still be guaranteed income for him, which is not an easy feat. I am shying away from advisors at this point, and would like to come up with something myself, and then leave instructions for my son to see a “fee based” advisor that would help him do whatever rebalancing is needed each year.
I invested $500.000 with an advisor just before the market crash, of which $250,000 was lost in bankruptcies. The remaining money (now around $300,000) is in very high risk preferred stock and a couple of bonds. A good number of these securities are still down 50 -60%. They are generating about $30,000 (before advisor fee- so net about $27,000 a year in income if there are no more bankruptcies)
I invested myself another $170,000 in income producing stocks, some preferred stock, MLP’s, utility stocks, with a smattering here and there of some other decent large cap dividend stocks. That is generating about $9,000 a year. I am down about $4,500 on that mix of stocks to date. Besides this, I have about $900,000 in cash left. I want to keep about $300,000 liquid in CD ladder and money market, so that leaves me $500,00 left to invest.
I would still need more income for my son to live on after I’m gone, maybe $10,000 more, as the money with the advisor is shaky. On the other hand, they may recover over time. Who knows? So I figure I have my high risk, high income pool so I must be careful with the remaining, and yet have some additional income and growth potential.
That Is why I gravitated to dividend stocks myself for safety with the possibility of some growth. The CD and Money Mkt funds right now are so pitiful, that the amount of income from them at this juncture is negligible.
I still have a small house in Phoenix, Az. that needs to get sold, but the market there is the #1 hardest hit market in the country. (up to 60% losses) So that house will probably only to sell for $150,000. About what I paid for it 12 years ago and I have put considerable money into remodeling as well.
So there you have my life story laid out bare before you. (a little humiliating) But I have been reading this board for a couple of years now, and I know there are some intelligent investors on here. Sooooo…….. What would you do in my shoes? (Besides telling me to fire the advisor. I know one of you will say that)
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