UnThreaded | Threaded | Whole Thread (10) | Ignore Thread Prev | Next
Author: mdlangford Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75383  
Subject: Please suggest an income portfolio Date: 11/4/2013 1:23 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Hello, my mother in law recently sold her home, and currently the proceeds of that sale ($500k+) are sitting in various savings accounts. My wife and I are trying to convince her to put that money to work, but all 3 of us distrust "financial advisers" that just try to sell you expensive funds to pad their commission.

She has enough income from SS, 401k, and military survivor benefit to cover her expenses, so income on this principal would be for discretionary expenses. Her priorities are:

1. Preserve principal as much as possible (appreciation of principal is not a high priority)
2. Achieve 3-5% yield annual yield (some yield volatility is acceptable, since she's doesn't need the yield to pay the bills)

I'm not too knowledgeable about income investing, but here's what I came up with just from a few hours of research:

10% in a high yield money market account, ~1% yield
10% XLU-utility ETF, 3.9% div yield,
10% XLP-consumer product ETF, 2.7% div yield
10% DTD-broad dividend ETF, 2.7% div yield
10% DEM-emerging market dividend ETF, 4.0% div yield
10% TDIV-broad dividend ETF, 2.5% div yield
10% DHS-high yield dividend ETF, 3.6% div yield
10% EDV-treasury ETF, 3.4% div yield
10% ITR-corporate bond ETF, 2.9% div yield
10% EAD-junk bond fund, 8.9% div yield

Average yield of this portfolio is about 3.6%. Asset allocation is 10% cash, 60% dividend-paying equities, 30% bonds.

Thoughts? Thanks in advance.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (10) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement