Have you ever found yourself at a crossroads, wondering how to determine the perfect mix for your retirement portfolio? The questions can be overwhelming. What stocks should I own? What bonds should be in my portfolio? Where should I allocate them? In this video I walk through a real-life example to shed light on the steps taken to guide one couple through this intricate process.

Meet Todd and Katie
Todd, 66, and Katie, 63, approached us with a $3.2 million portfolio, seeking guidance on allocation. Despite diligent saving and investing, they felt uncertain about their financial security in retirement.

Building a Foundation: Goals and Income
With a retirement goal of $8,500 per month, including healthcare and travel expenses, Todd and Katie aimed for an additional $20,000 annually. Analyzing income streams, we considered Todd's Social Security and Katie's with a spousal benefit.

Understanding Cash Flows and Expenses
We broke down living costs, housing, healthcare, and travel expenses. Long-term care costs were factored in to ensure financial support for unforeseen circumstances.

Portfolio and Account Allocation Strategy
Determining the annual portfolio draw, we planned to source $600,000 from their taxable account for flexibility in tax-related strategies. Our recommendations focused on allocation strategy, ensuring each investment served a specific role.

Diversified Portfolio
Crafting a well-diversified portfolio for stability, we recommended conservative investments for the initial years. Emphasizing diversification even within their Roth IRA, we aimed to balance growth potential.

Addressing Current Investments
Shifting from predominantly large U.S. stocks to an 80-20 portfolio (80% growth, 20% stability) aimed to balance growth and risk mitigation.

Todd and Katie's journey exemplifies the intricate yet rewarding process of crafting a retirement portfolio. By aligning investments with goals, addressing income streams, and strategically diversifying, we aimed to ensure they could enjoy a secure and fulfilling retirement.

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⏱Timestamps:⏱
0:00 - Todd and Katie’s portfolio
2:05 - About them and their goals
4:28 - Income and cash flows
8:55 - Considering tax strategy and markets
14:17 - James’s recommendation
18:25 - Strategically allocated funds
22:08 - Dream big

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