Personal Investments • Help with Mom's Portfolio - Fixed Income

Emergency funds: Yes
Debt: None, paid off house worth $500k
Tax Filing Status: Single
Tax Rate: 24% Federal, 0% State
State of Residence: TX
Age: 79
Desired Asset allocation: 70% stocks / 30% bonds
Desired International allocation: 0% of stocks
Please provide an approximate size of your total portfolio: 4.5 million

Social security: 38k a year
Additional income needed from portfolio: 40k a year

Taxable
70% VANGUARD TOTAL STK MKT (VTI)
8% FIDELITY MMKT (FZDXX)
5% VANGUARD TOTAL BND MRKT (BND)
15% Individual bonds (mostly TIPS, one nominal) maturing in 2024-2027

Traditional IRA
2% VANGUARD SHT-TERM INFLATION-PROTECTED (VTIP)

I am looking for advice, mostly on the fixed income side for my Mom's portfolio I manage. I have three bonds maturing in early 2024 that I will have $550k to redeploy.

With the $550k would you recommend:

• keep thing simple and increase the BND holding with the $550k?

• Purchase a short term TIPs fund (VTIP)?

• Or continue building out at TIPs ladder into 2028, 2029, 2030? Beyond?

• Other fixed income ideas I'm not thinking of?

Mom is in good health. Clearly has a very low withdrawal rate. I view the fixed income side as her money to get her to the finish line. She has no LTC insurance. Hopefully the VTI would grow and wouldn't be touched and pass to her heirs with a step up.

Statistics: Posted by chickadee — Thu Jan 04, 2024 1:10 pm — Replies 1 — Views 142

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