Hi all,I'm helping my mom with her retirement planning. (She's not worked in 30 years and my father passed away just under 3 years ago. He was the bread winner but had just retired. Anyway...I'm trying to get a feel for how we've invested it.)Some basic information. Our financial advisor charges 0.65% of assets under his watch. Based on what I've read this is a very competitive rate.There are 3 accounts under the F/A. Trust: $183,000 (I'm the trustee of this account)Taxable: $51,000IRA: $616,000Total: $850,000Now, the trust has real estate partnerships paying regular dividends into the account. In 2006 it was $19,000. In 2007, I estimate that it will pay $20,000. (The real estate has been a very consistent performer) The trust will pay to the taxable account $12,960 of the dividends from the partnerships. (Current income +5k approx. Eventually the properties will sell and we'll get the cash but valuing them into the portfolio is difficult, so I'm ignoring them for the moment but for the cash inflows)Now I expect mom to withdrawal $39,000 (3,100/month 1st 6 months and $3,400 last 6 mos) in automatic withdrawals. I also expect $10,000 in unplanned withdrawals for next X-Mas, for emergencies, etc. (Health care costs in July will go up because she will be paying for med's, doc's out of pocket)So, if the expected happens she will withdrawal $49,000 from the accounts in 2007. This is offset by the income coming into the portfolio (trust) by $21,000, so the final actual hit to the portfolio should be $28,000$28,000/850,000= 3.29%, For 2006 it was: $26k/815k = 3.19%We currently have the following investments in these accounts:Cash (MM): 1.2%Short term bond: 4.8%Bank Loan: 8.9%Core Bond: 7.1%Infl. Ind. Bond: 6.5%Convertible Bond: 6.1%Intn. Bond 4.0%Merger: 5.3%Tact. Asset Allc: 13.2%Mark. Neutral: 5.3%US Long/Short: 2.4%Global Long/Short 2.4%Real Estate 3.4%Large Cap Val. 4.7%Large Cap blend 4.4%Small Cap Blend 3.5%Global Equity 12.3%Commodity: 4.7%Total 100.0%According to the FA the expected return is 8.2% with a deviation of 4.6%. Does it sound like I'm on the right track or do I need to look into this more?Thanks,Bisonrules
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