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help me with allocation
Old 08-10-2006, 05:31 PM   #1
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help me with allocation

Ok, my parents recently divorced and I am trying to help my mom with her assets. My dad was always the bread winner of the family. My mom's lump sum is coming from the sale of the house and she will also be getting part of my dad's fed pension - monthly support I believe. I really don't know the exact figures as of yet but here are a few facts:

She is almost 55.

She has about $20,000 in her 401k.

I put her mostly in equities (large cap, small cap and intl') b/c she doesn't have a good bond fund in her 401k. It's a super safe "income" fund that barely covers inflation over the long haul - maybe 4% which is why I skipped it.

She hopes to work till 62 and at that time will recieve a tiny pension - non-COLA'd. She will have access to health care at 62.

She just bought a house and had to put some of the money into a down payment for it.

She has very little debt aside from that.

I would like to get her into some Vanguard funds and get her started in a Roth.

She still needs a portfolio that can grow for retirement but I would also like to throw some income in there.

She is in a low tax bracket and is eligible for catch up contributions.

I was thinking something along the lines of VG Balanced, a Target fund or Wellesley for a Roth. Or should I split it up among several funds to reduce variations in the portfolio?

So obviously this is and will not be an ER candidate but I am really trying to get her on the right track. It is pretty amazing what happens in one person allows the other to completely control all facets of the finances in a marriage.


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Re: help me with allocation
Old 08-11-2006, 05:46 AM   #2
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Re: help me with allocation

Hard to go wrong with Wellington in her shoes. Simple, cheap, safe and decent returns.
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