Investment advice

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honolulu007
Posts: 3
Joined: Tue Jan 18, 2022 9:53 pm

Investment advice

Post by honolulu007 »

I recently inherited approx. $2 mil from my parents estate.
I currently have it as it was left to me at Schwab.

VASIX $500,000 Vanguard life Strategy income
FIJEX $1 Mil Frost total return
PRILX $200,000 Parnassus Core Equity Fund
FAYZX $200,000 Fidelity advisor
Cash $100,000 Money market
My dad said, just leave it like this and no worries.

I am 65 and just retired I want to live off this money the next 30 years. My monthly expenses are around $5,000 a month.
Is this a good portfolio, or can I adjust this. I noticed the fees are kind of high.

Thanks in advance..
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retired@50
Posts: 12709
Joined: Tue Oct 01, 2019 2:36 pm
Location: Living in the U.S.A.

Re: Investment advice

Post by retired@50 »

honolulu007 wrote: Tue Jan 18, 2022 10:37 pm
I am 65 and just retired I want to live off this money the next 30 years. My monthly expenses are around $5,000 a month.
Is this a good portfolio, or can I adjust this. I noticed the fees are kind of high.

Thanks in advance..
Welcome to the forum. :happy

Some of the expense ratios are high. (0.60% - 0.80% range)
If you can sell some of the high expense ratio funds without tax consequences, then it might be worthwhile to make a switch.

Have you had a chance to get familiar with the classic Boglehead 3-Fund portfolio?

See link: https://www.bogleheads.org/wiki/Three-fund_portfolio

With a portfolio the size you describe ($2 mil), spending $5,000 per month shouldn't be a problem, at least historically.

Regards,
If liberty means anything at all it means the right to tell people what they do not want to hear. -George Orwell
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Sandtrap
Posts: 19582
Joined: Sat Nov 26, 2016 5:32 pm
Location: Hawaii No Ka Oi - white sandy beaches, N. Arizona 1 mile high.

Re: Investment advice

Post by Sandtrap »

Welcome:
More comprehensive suggestions might be had if you please reformat you original post (use pencil icon) to include more data as well. Otherwise a lot of assumptions have to be made for substantive actionable input.
Like this:
Portfolio Review Request
https://www.bogleheads.org/forum/viewt ... =1&t=6212

Without knowing what you already have, there has to be a lot of assumptions on how to place the new money. See?

So, to get an actionable "comprehensive" strategy that works for "you", there has to be a bigger picture.

Thanks!
PM me as you wish for help with the edit, etc.
j :D
Wiki Bogleheads Wiki: Everything You Need to Know
dbr
Posts: 46137
Joined: Sun Mar 04, 2007 8:50 am

Re: Investment advice

Post by dbr »

I agree it makes no sense to pay high fees. Doing some rough math if you were to use 4% as a baseline safe withdrawal rate and expect to support $80k of spending, then 1% in costs reduces that to only being able to support 3% or $60k in spending. Spending models assume no costs and you also need to add in taxes as expenses.

The 3 Fund model suggested is probably more rational.

You should have had basis stepped up so selling now should not cost much in taxes.

Your father has a point about leave it alone. The intent was to give you something you would not have to mess with and would not mess with. That said, there are probably lower cost and simpler choices for those assets. I would certainly not go out and try to turn that portfolio into a get richer quicker scheme.
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