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|Subject: Bonds vs equities - OT?||Date: 7/24/2013 2:45 PM|
|Author: Tuni||Number: 72673 of 80172|
I am the trustee for my brother's trust currently managed by a bank. He will not gain access to the Trust (according to the terms of my father's Will and the Trust) for 5 more years (although he is 60).
Brother has "heard" that he should get rid of all the bonds (held in Mutual Funds) little by little and concentrate on equities etc....His current allocation (HIS choice last year re. asset allocation) is 70% Mutual Fund (equities) 30% Mutual Fund bonds.
Since I am responsible for the finances of the Trust and tend to be much more conservative re. my dad's Trust and the funds in it for the benefit of my brother, I am more than hesitant to make any such change as recommended by "his friends" - Therefore the reason for the my question.
My feeling is although he won't make a helluva lot of $ from the bonds, they represent a "safer" investment than equities at this point. Bearing in mind the current global financial situation and the ups and down of the stock market,my opinion is that I would be abdicating my responsibility to the Trust if I permit him to act/react to everything he hears on the street. (that's why I'm the Trustee) <sigh>....
Note: My husband and I also have our investments managed by the same bank although since we are older and retired our allocation differs and we are comfortable with our own situation.
Would appreciate feedback on this situation.
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