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 |