Happy New Year everyone. I have recently fired my broker with UBS and have moved all my assets to a self directed Fidelity account. I am a passive investor wanna be and am almost finished with the "Investors Manifesto". In the meantime, I need to sort through the mess I have made over the years with UBS. I am not sure if this forum is the appropriate place as I have quite a bit of reallocating to do but I hope some of you would be willing to take the time and help me get started. I have more than enough Capital Loss Carryfowards to selloff my entire portfolio without any current tax consequences.
Here is my information:
Background
Employment Status: Retired since Dec 2007
Age:46
Married w/ 3 Children: Ages 16, 13, 12
Home (Paid for)
Income: Only source of income is from investments
Withdrawal Rate Needed as % of Investment Portfolio (Excluding Real Estate) in Today's dollars:
For the Next 10 Years = 3% (Need to fund kids education)
Thereafter estimate 2% rate
Other: Capital Loss Carry forward available (approx 10%) of portfolio value
Investment Expertise: Novice but I do have a CPA license and MBA in taxation so some finance background
Max % of Equity I can handle without selling in panic markets = 37.5% (P.S. Where do you think those NOLs came from?)
International - Unsure but maybe middle of the road at 30%
Emergency funds = Yes
Debt: No debt or mortgage
Tax Filing Status: Married filing Jointly w/ 3 dependent children
Tax Rate:
Federal Taxes: Effective (Tax/AGI)- 15%; Marginal (Tax/Taxable Income)- 25%
State Taxes: Effective 4%; Marginal6%
No prefereence on subcategory breakdowns
Current portfolio size = X,XXX,XXX (7 Figures)
Investment other than Stocks and Bonds (Real Estate approx 10% of S&B Portfolio)
Summary of Investments:
Cash & Equivalents 39% (Includes CDs that are maturing in the next several weeks)
Equites 27%
Bonds 34%
Taxable
Bond Funds (32.97%)
5.13% LOOMIS SAYLES INVST GRADE BOND CL A (LIGRX) 0.80%
4.83% FRANKLIN GEORGIA TAX FREE INCOME A (FTGAX) 0.69%
4.75% BLACKROCK GNMA PORT CLASS A (BGPAX) 1.09%
4.73% OLD MUTUAL DWIGHT SHORT TERM FXD INC A (OIRAX) 0.95%
3.79% LOOMIS SAYLES GLOBAL BOND RETAIL (LSGLX) 1.00%
2.41% ISHARES BARCLAYS TREAS INFLATION PROTECTED SECS FD (TIP) 0.20%
2.01% WELLS FARGO ULTRA SHRT TRM MUNI CL A (SMAVX) 0.68%
1.37% PUTNAM PREMIER INC TR SH BEN INT (PPT) 0.88%
1.35% EATON VANCE LTD DURATION INCOME FD (EVV) 1.09%
1.34% WESTERN ASSET MANAGED HIGH INCOME FD INC COM (MHY) 0.96%
1.22% NUVEEN PREM INCOME MUN FD INC (NPI) 1.16%
0.03% LOOMIS SAYLES GLOBAL BOND RETAIL (LSGLX) 1.00%
Cash & Equivalents (38.57%)
27.77% WFCU 13 month CDs 3.98% Maturing 1/31/2010
10.80% Cash (Excludes 12 Month Emergency Fund)
Equity Funds (21.99%)
3.28% S & P 500 DEPOSITORY RECEIPT (SPY) 0.09%
3.24% DIAMONDS TRUST SER I (DIA) 0.17%
2.39% ISHARES TR MSCI EAFE INDEX FD (EFA) 0.35%
1.33% CALAMOS GROWTH CLASS A (CVGRX) 1.32%
1.26% ISHARES TR RUSSELL MIDCAP INDEX FD (IWR) 0.20%
1.26% MUTUAL SERIES MUTUAL SHARES CLASS A (TESIX) 1.08%
1.23% ISHARES TR RUSSELL 2000 INDEX FD (IWM) 0.20%
1.13% BLACKROCK GLOBAL ALLOCATION CL A (MDLOX) 1.22%
1.04% FIRST EAGLE GLOBAL CLASS A (SGENX) 1.14%
0.64% ISHARES TR MSCI EMERGING MKTS INDEX FD (EEM)0.72%
0.64% COHEN & STEERS REALTY SHARES (CSRSX) 1.00%
0.62% IVY GLOBAL NATURAL RESOURCES CLASS A (IGNAX) 1.40%
0.61% ROYCE MICROCAP INVESTMENT CLASS (RYOTX) 1.69%
0.61% OPPENHEIMER DEV MARKETS FD CLASS A (ODMAX) 1.43%
0.60% ALLIANCEBER SMALL MID CAP VALUE CL A (ABASX) 1.15%
0.54% THORNBURG INTL VALUE CL A (TGVAX) 1.36%
0.53% FIRST EAGLE OVERSEAS CLASS A (SGOVX) 1.15%
0.51% MUTUAL SERIES GLOBAL DISCOVERY CLASS A (TEDIX) 1.30%
0.51% GATEWAY FUND CL A (GATEX) 0.94%
0.02% COHEN & STEERS REALTY SHARES (CSRSX) 1.00%
Equity Stocks (1.25%)
0.43% MERCK & CO INC NEW COM (MRK)
0.34% INTEL CORP (INTC)
0.33% AT&T INC COM (T)
0.15% DISNEY WALT CO DEL (DIS)
Options (-.12%)
-0.02% CALL (NQ ) INTEL CORP JAN 20 (100 SHS) (-NQAD)
-0.02% CALL (DIS) DISNEY WALT CO DEL JAN 28 (100 SHS) (-DISAV)
-0.04% CALL (MZR) MERCK & CO INC APR 35 (100 SHS) (-MZRDG)
-0.04% CALL (T AT&T INC JAN 25 (100 SHS) (-TAE)
HIS IRA
Bond Funds (.97%)
0.54% BLACKROCK GNMA PORT CLASS A (BGPAX) 1.09%
0.43% LOOMIS SAYLES INVST GRADE BOND CL A (LIGRX) 0.80%
Equity Funds (3.98%)
0.70% ALLIANCEBER SMALL MID CAP VALUE CL A (ABASX) 1.15%
0.51% MUTUAL SERIES MUTUAL SHARES CLASS A (TESIX) 1.08%
0.48% THORNBURG INTL VALUE CL A (TGVAX) 1.36%
0.46% CALAMOS GROWTH CLASS A (CVGRX) 1.32%
0.44% PUTNAM INTERNATIONAL EQUITY CL A (POVSX) 1.42%
0.38% FIRST EAGLE GLOBAL CLASS A (SGENX) 1.14%
0.38% BLACKROCK GLOBAL ALLOCATION CL A (MDLOX) 1.22%
0.29% OPPENHEIMER DEV MARKETS FD CLASS A (ODMAX) 1.43%
0.26% IVY GLOBAL NATURAL RESOURCES CLASS A (IGNAX) 1.40%
0.08% FIDELITY FOUR-IN-ONE INDEX (FFNOX) 0.20%
HER IRA
Equity Funds (.39%)
0.39% FIRST EAGLE GLOBAL CLASS C (FESGX) 1.89%
100.00% Total Portfolio
OK, so after mulling it over reading tons of post, here is what I am thinking in terms of a restructured portfolio:
If I go with this structure, the allocations both before and after between asset types will be as follows:
The Cash/MM is essentially a 1 1/2 years of emergency funds.
This represents a 100% selloff of my current investments. I am more interested in the asset buckets and locations then the individual funds/etfs at this point.
Let me know what you think.