No. of Recommendations: 0
What are her intentions with the portfolio? Does she plan to use it all or leave an inheritance? How are her income needs growing each year?

How many years would the portfolio last if the stocks dropped 50% in value? That is, if the stocks stopped paying dividends and lost 50% of their value, how many years would it last if you had to replace the income stream by selling? At your mother's age, if it lasts over 15 years in this worst case scenario, I don't think you have anything to worry about now and have plenty of time to make any changes if necessary. Even if it lasts only 10 years, you have time.

I would love to have your mother's "problem." Looks like whoever managed the portfolio did a great job. A key factor is if the income stream no longer meets her needs. Prior to that point you'll need to look at taking gains and how it will affect dividend income.

Are my worries unfounded?

Currently yes, but it doesn't hurt to ask questions and do some planning.

Do I need to do anything?

Yes, discuss her future cash needs. Find out if the present cash flow will meet her needs and for how long. That will give you an idea on your timeframe.

Is this a job for a professional?

If you do hire a professional, go with a fee only consultant, one who charges by the hour and not one who make his fee by selling something. I'm thinking that a consultant will likely cause a short-term tax hit for a very small incremental gain.

Calvin
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