Hi all, looking for your suggestions/advice on something. I have a friend who's company just changed ownership and she was able to roll her 401k to an IRA and start new in the new 401k. The old 401k money equals about $400k. She is 45, no DH or DKs and plans on 15 more years of work at a mid 6 figure salary job.
She had a few meetings with an advisor, that I sat in on, and he was of course offering to manage for 1% of assets a portfolio of managed mutual funds, which had expense ratios of 1-2%. I explained the long term costs of this and explained to her that we could do a low cost fund set it and forget it portfolio that we'd just need to rebalance once per year.
My question to you all is if we want a 25-30% bond allocation and want to do this with 4-5 low cost index funds max, what would your recommendations be.
She had a few meetings with an advisor, that I sat in on, and he was of course offering to manage for 1% of assets a portfolio of managed mutual funds, which had expense ratios of 1-2%. I explained the long term costs of this and explained to her that we could do a low cost fund set it and forget it portfolio that we'd just need to rebalance once per year.
My question to you all is if we want a 25-30% bond allocation and want to do this with 4-5 low cost index funds max, what would your recommendations be.