I'm helping re-configure a family member's portfolio, and their stated goal is to reduce equity exposure from 85% to about 50%-60%. The bulk of their assets are in a taxable account, which will require selling stock and buying fixed income in taxable. They will be realizing about $65k of LTCG to do so. They are in the 22% bracket filing Single ($65K pension, RMDs, interest; plus $35k dividends).
I'm trying to keep things simple, so my initial thoughts for fixed income in taxable are some combination of:
CDs / Savings
Money Market Funds
Bond Funds
I just don't know what the best bond funds to suggest might be: Total Bond, Intermediate Treasury, Short-term aggregate, Intermediate TIPS, some sore of muni bond fund, other?? I appreciate that individual T-Bills and TIPS might be a reasonable solution in this case but I don't have a lot of experience with these the owner may prefer the simplicity of a fund.
Owner is 74 years old, not reliant on portfolio for living expenses at this point in time, but would like to reduce stock exposure generally and reduce portfolio volatility.
Thanks,
DX
I'm trying to keep things simple, so my initial thoughts for fixed income in taxable are some combination of:
CDs / Savings
Money Market Funds
Bond Funds
I just don't know what the best bond funds to suggest might be: Total Bond, Intermediate Treasury, Short-term aggregate, Intermediate TIPS, some sore of muni bond fund, other?? I appreciate that individual T-Bills and TIPS might be a reasonable solution in this case but I don't have a lot of experience with these the owner may prefer the simplicity of a fund.
Owner is 74 years old, not reliant on portfolio for living expenses at this point in time, but would like to reduce stock exposure generally and reduce portfolio volatility.
Thanks,
DX
Statistics: Posted by Darth Xanadu — Wed Jan 03, 2024 1:52 pm — Replies 0 — Views 48