Client Review : FACTS
70 years old
Account value: $2,000,000
Current Investment Model: 50% Stocks/Equity and 50% Fixed Income
Must withdraw $300,000 to purchase office building
Client can't take on more risk
Withdrawal rate from the account should be no more than 4% per year
Client needs to receive $80,000 per year to meet living expenses
Risk Score measures risk tolerance. 72 is same as the S & P index. Any number higher than that is more risky than the stock market
CURRENT PORTFOLIO
JPM SMALL CAP STOCK MF
JPM MID-CAP GROWTH MF
JPM LARGE CAP GROWTH MF
JPM LARGE CAP VALUE MF
JPM BALANCED MF
JPM GLOBAL GROWTH MF
GOOGLE STOCK
APPLE STOCK
JPM DIVIDEND MF
JPM S & P INDEX FUND
JPM LARGE CAP INTERNATIONAL MF
JPM REITS INDEX
MONEY MARKET
JPM BLUE-CHIP BOND MF
JPM GOVERNMENT BOND MF
JPM GLOBAL BOND MF
JPM INVESMTMENT GRADE BOND MF
JPM TIPS MF
AVG. ANNUAL RETURN-10 YEARS
14
12.6
12
11.2
9.3
13
19
21
9
10
11.7
11
0
5.4
4.5
6.2
6.4
3.5
RISK SCORE
98
85
80
72
70
88
95
94
68
72
76
69
30
57
45
65
68
38
VALUE
$100,000.00
$100,000.00
$100,000.00
$100,000.00
$100,000.00
$200,000.00
$300,000.00
$200,000.00
$300,000.00
$200,000.00
$300,000.00
INCEPTION DATE
2/2/2017
7/1/2018
3/1/2000
4/1/1995
8/1/2007
5/1/2016
4/1/2010
2/1/2005
3/1/1999
8/1/2008
1/1/2010
4/1/1998
5/1/2011
7/1/2003
3/1/2009
$2,000,000.00
PROPOSED PORTFOLIO
JPM SMALL CAP STOCK MF
JPM MID-CAP GROWTH MF
JPM LARGE CAP GROWTH MF
JPM LARGE CAP VALUE MF
JPM BALANCED MF
JPM GLOBAL GROWTH MF
AVG. ANNUAL RETURN-10 YEARS
14
12.6
12
11.2
9.3
13
RISK SCORE
98
85
80
72
70
88
VALUE
$51,000.00
$85,000.00
INCEPTION DATE
2/2/2017
7/1/2018
3/1/2000
4/1/1995
8/1/2007
5/1/2016
GOOGLE STOCK
APPLE STOCK
JPM DIVIDEND MF
JPM S & P INDEX FUND
JPM LARGE CAP INTERNATIONAL MF
JPM REITS INDEX
MONEY MARKET
JPM BLUE-CHIP BOND MF
JPM GOVERNMENT BOND MF
JPM GLOBAL BOND MF
JPM INVESMTMENT GRADE BOND MF
JPM TIPS MF
19
21
9
10
11.7
11
0
5.4
4.5
6.2
6.4
3.5
95
94
68
72
76
69
30
57
45
65
68
38
$85,000.00
$68,000.00
$51,000.00
$85,000.00
$85,000.00
$340,000.00
$340,000.00
$85,000.00
$340,000.00
$85,000.00
4/1/2010
2/1/2005
3/1/1999
8/1/2008
1/1/2010
4/1/1998
5/1/2011
7/1/2003
3/1/2009
$1,700,000.00
The current portfolio consists of a $2,000,000 investment split evenly between 50% equities and 50% fixed income. The proposed portfolio reallocates assets towards a more income-focused strategy.
The revised portfolio allocates 20% to equities and 80% to fixed income securities. While this strategy may reduce potential returns, it aims for increased stability and income.
This conservative approach focuses on an income-based model, ensuring that average annual returns will still exceed the minimum return of 4%.
The client must sustain an annual withdrawal rate of $80,000. Additionally, all proposed investments have inception dates exceeding 10 years, along with their respective risk scores.
These risk scores are equal to or below the overall stock market risk. He will withdraw 4% annually from the proposed portfolio, amounting to $68,000 per year, in addition to his lease payments.
He will have annual lease payments of $12,000 and will continue to receive $80,000 per year in income, all while allowing for growth over time and taking on less risk than his current approach.
Current portfolio.