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0

I would prefer post-tax-401k instead of regular taxable plan. Like other post said, you have a chance to get in plan roth conversion (This the best almost near Roth IRA equivalent) or megabackdoor roth. Life is not stopping at 59.5, but may go around 90+ years. At the age of 59.5, you can easily convert Magabackdoor and grow the money tax free for next 30 ...


-3

It would be almost impossible to diversify with 50% in one stock. The risk is extremely high. Another 2008-like collapse would cost her roughly $1.5m. That may seem unlikely but keep in mind the Democrats are leading in the polls and they could very likely win like they did in 2007. At 80 with a fairly decent amount of wealth the goal should be ...


1

There is the question of what your mother's tax bracket is. If it's low, you might want to slowly rebalance the portfolio, i.e., sell a small portion of the JPM each year. This will generate a tax hit, with the offsetting benefit that you will be increasing the diversification of her portfolio. Don't forget that these are long term capital gains we're ...


0

Mismanagement by Morgan Stanley? Only if they bought that much JPM stock for her. I don’t think their integrity is what you should be questioning but rather the choices you will make. Personally, I bet that there's a high chance that your return will be within 2% over 5-10 years whether hold JPM or you diversify. Ask your mother what she wants. That’...


1

Is this a suitable allocation of assets? All allocation of assets are of course up to the investor, the risks they are willing to take and the companies they want to support. To me it looks like borderline mismanagement, but I'm willing to be convinced otherwise. This is definitely strange, but large corporations are fairly stable. And $3.5M is a lot. ...


1

I'm 62, getting ready for retirement, and in a similar situation. I worked for a dozen years at Microsoft, purchasing ESPP, getting stock grants, etc. My stay there nearly exactly coincided with Steve Ballmer's turn at CEO. During that time (except a large drop right after I started and a dip/recovery in 2008-2009), the stock remained completely flat. ...


5

Given the capital gains basis on the stock, it would be practical for her to continue to hold it. It is potentially possible that JPM grow so much over the past 10 years that it went from a moderately weighted position (10-15%) to 50% and was not sold for tax reasons. With that in mind it is hard to tell if this is mismanagement as the adviser could be ...


9

Yes, this is terrible in terms of lack of diversification and concentrated risk. Conflict of interest? No, because there's no benefit to Morgan Stanley if a client owns shares of JPM. Mismanagement? Maybe, maybe not. This might be a violation of FINRA's "Know Your Client Rule" which requires a broker to assess each customer's financial situation, ...


49

This seems to me irregular both in terms of risk, lack of diversification Me too. Is this a suitable allocation of assets? Putting 50% in one stock is acceptable, I think, if that one stock is a highly diversified and well-run investment company like Berkshire-Hathaway. (Apparently, half of Bill Gates' wealth is in B-H.) Of course, a giant bank isn't ...


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