Maintaining A No-Debt Lifestyle

Linda Clayton may have to suppress her fears about debt to increase her fortunes

still have an additional $400 in hand and save money in interest.

REALLOCATE PORTFOLIO ASSETS
Epps also suggests that Clayton reconfigure her existing portfolio, which comprises nearly all equities, to include 60% equities (large-cap, mid-cap, small-cap, and international stocks), 38% bonds (corporate bonds, high-yield corporate bond funds, and government funds), and 2% in short-term CDs and cash. Moreover, Clayton is heavily invested in Citigroup stock in her brokerage account and 401(k); the former Citigroup employee worked there for more than 20 years. “You don’t want more than 10% in one company stock,” Epps cautions. “Remember Enron.”

Winner No. 40 LindaClayton
Financial Snapshot:

HOUSEHOLD INCOME
Gross Income $73,000
ASSETS
Virginia Home (appraised value) $275,000
401(k) Plan 70,976
Bronx Co-op (appraised value) 68,000
Fannie Mae Retirement Plan 49,460
Car 28,000
Brokerage Account 14,500
ESOP 7,096
Money Market 7,000
Savings 1,100
Checking 400
Total $521,532
LIABILITIES
Home Mortgage 177,887
Co-op Mortgage $12,946
LIGN=”MIDDLE”>Total $190,833
Net Worth $330,699
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