Join Early Retirement Today
Reply
 
Thread Tools Display Modes
help me with allocation
Old 08-10-2006, 05:31 PM   #1
Thinks s/he gets paid by the post
wildcat's Avatar
 
Join Date: Feb 2005
Location: Lou-evil
Posts: 2,025
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.

Thanks.
__________________
"These walls are kind of funny. First you hate 'em, then you get used to 'em. Enough time passes, gets so you depend on them"
wildcat is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: help me with allocation
Old 08-11-2006, 05:46 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Mar 2003
Posts: 18,085
Re: help me with allocation

Hard to go wrong with Wellington in her shoes. Simple, cheap, safe and decent returns.
__________________
"All animals are equal, but some animals are more equal than others."

- George Orwell

Ezekiel 23:20
brewer12345 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Allocation again FinallyRetired FIRE and Money 3 04-30-2007 12:21 PM
Asset Allocation: Effective but not feasible? Hillbilly FIRE and Money 20 04-28-2007 10:02 PM
Equity/Fixed Income Allocation Change with Age Hydroman FIRE and Money 32 08-30-2006 10:05 PM
Asset Allocation AV8 FIRE and Money 17 02-25-2006 07:13 PM

» Quick Links

 
All times are GMT -6. The time now is 06:40 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.