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Author: BillStanley Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75340  
Subject: Re: portfolio allocation Date: 11/26/1998 12:35 PM
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<< Can anyone suggest proper portfolio allocation for a 58-year-old retired FIT with about $600,000 to invest. It's currently with an advisor who charges 1.25% and has averaged about 21% gain after 1994. I take about $20,000 annually from earnings. >>

The first and most important issue is to get out from under the 1.25% fee or the $7,500 per year. There is probably $2,000 additional in trading costs based on other accounts I have observed. If the advisor is investing in funds the numbers are much worse.

Round that to 10 k per year. Ask yourself if you can and would like to spend some effort to learn and save the 10 k. My answer would be yes but yours might be different. Learning and developing the mental attitude to deal with the market volatility can consume two to three hours each day. If you can have fun and save or earn ($10,000 / 500 hr's. per year) $20 per hour then maybe your answer might be yes.

By being here you probably already know more about investing than 75% of the population.

S&P index have been beating your advisor. My Dow4 whose year ended in October 98 beat your advisor.

There might be a way to gradually slip away from your advisor while developing your own confidence and comfort level.

Bill Stanley
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