Real Life Portfolio Examples
Here are some real life portfolio examples.
Current Income Investor (current income portfolio)
John, a newly retired 59 year old IBM executive, sells his Newton, Mass
home and heads west to Santa Fe. He reinvests his $1.5 million home
proceeds in a high quality, laddered municipal bond portfolio. His new
investment provides John and his wife $70 thousand dollars of tax-free
Funding Investor (funding portfolio)
Mr. and Mrs. Davidson decide to allocate their bonuses to funding
college tuition costs for their 10 year old daughter. Using the help of
a financial planner to predict future college expenses, they invest in
zero coupon bonds that will completely fund their child's education.
Total Return Investor (total return portfolio)
Nancy and John are sophisticated and aggressive investors. They believe
that long term municipal bonds[b]
offer attractive yields and have the potential for capital appreciation.
For this reason they decide to allocate 65% of their portfolio to
equities and 45% to high quality municipal bonds.
For more information or to have us answer any questions you may have,
please email Atlantic Financial,
or contact us
Tax sensitive investing may not provide as
high a return as other investments before consideration of federal
income tax consequences.
Bonds contain interest rate risk (as interest rates
rise bond prices usually fall); the risk of issuer default; and
inflation risk. The municipal market is volatile and can be
significantly affected by adverse tax, legislative, or political
changes and the financial condition of the issuers of municipal
securities. Interest rate increases can cause the price of a debt
security to decrease. A portion of the dividends you receive may be
subject to federal, state, or local income tax or may be subject to
the federal alternative minimum tax. A portion of the funds income
may be subject to state taxes, local taxes and the federal
alternative minimum tax.
Type of Portfolios We Create
Portfolio Real Life Examples
Municipal Bonds FAQ
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Credit Ratings Table