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US Large Cap Fidelity S&P 500 Index FUSEX 5% 35,000.00 15.65 4 0.09 1 1.03 10.09
US Large Cap Clipper Fund CFIMX 5% 35,000.00 15.73 5 0.72 1.07 1.02 12.03
US Mid Cap Dreyfus Mid Cap PESPX 5% 35,000.00 14.61 4 0.51 1 0.9 10.95
US Small Cap Dreyfus Sm Cap Index DISSX 5% 35,000.00 15.78 4 0.51 1 0.8 13.73
Real Estate Cohen & Steers CSRSX 5% 35,000.00 9.81 4 0.96 0.97 0.46 13
International Large Oakmark Int'l OAKIX 10% 70,000.00 12.62 5 1.05 1.19 0.64 15.39
International Mid/Small Fidelity Int'l Sm/Mid Cap FISMX 0% - 14.67 5 1.34 0.82 1.38 10.07
Emerging Markets Baron Emerging Markets BEXFX 0% - 8.63 5 1.38 0.82 0.52 12.78
Multi-Sector Bond Pimco PONDX 7% 45,500.00 6.55 5 0.90 N/A* 2.23 2.41
Investment Grade Bond Muni Bond Ladder 29% 199,500.00 4.9 5 0.65 0.88 1.43 3.56
High Yield Bond Fidelity Capital & Income FAGIX 25% 175,000.00 7.86 5 0.73 0.89 1.07 5.75
Cash 5% 35,000.00
US Large Cap
US Mid Cap
US Small Cap
5%, 5%
5%, 5%
5%, 5%
Real Estate
5%, 5%
25%, 25% 5%, 5% International Large
5%, 5%
International Mid/Small
0%, 0%
7%, 7% Multi-Sector Bond
29%, 29%
Investment Grade Bond
Cash
Diversification
Professional Management
Minimal transaction cost
Liquidity
Flexibility
Service
Avoidance of bad brokers
A bond is a loan; when you buy or invest in bonds, you
become a lender.
Bond ladder is a portfolio of fixed income securities in
which each security has a significantly different maturity date
Purpose is to minimize interest rate risk, increase liquidity
and diversify credit risk.
We used the bond ladder portfolio technique for our client
to help generate a stream of income and manage interest
rate risk.
Bond Maturity coupon Rating YTM Price Quantity Cost Annual pmt
40000.00
35000.00
30000.00
25000.00
20000.00
15000.00
10000.00
5000.00
0.00
1 2 3 4 5 6
Value Interest-pmt
Better control over exposure to
interest rate risk
Predictable cash flow
Opportunity to help manage an
ever-changing interest rate
environment
In conclusion, the process of
planning allows our client to see
where she stand financially and
determine what steps she must take
to reach her goals.
THANK YOU
QUESTIONS
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Personal Finance Turning Money into Wealth
by Arthur Keown