A friend of mine went through a separation and is in the middle of sorting out finances. The portfolio was managed by her partner and is a complete mess. For instance, there's $750k alone sitting in a single obscure South American mining company and additional funds in another random mid-cap company. A bunch in cash and something like $3k in the Vanguard 500 Index Fund. :p Because of the volatility of the funds in the single stock markets, I think she's down $100k from the initial investment. As a result I'm trying to help sort things out and get things on a better footing.
She's an S corp and will have approximately $350k once these random single stocks are liquified (and split with her partner), and has an additional $150k in IRAs. She'd also like to save money for a house downpayment but has owned a house before in the past (doesn't currently). She does NOT have a 401k set up for her S corp, so she can't get 2016 contributions in.
Given the situation, what might be the best course of action to take? No debts or other significant assets. Since she's thinking of house downpayment (around here that's $250k, and potentially purchasing house in a year or two), I thought she could do something along the lines of:
1) Set aside her 6 months living expenses in bank account
2) Set up 401k for 2017, max out at $53k contributions for that year and park in index fund
3) Maintain 250k in a CD ladder for downpayment at some point?
4) Park the rest into Vanguard index fund until 2018 401k contributions?
Her partner mentioned trying to hold the funds in the mining company until the stock goes up again, to offset some of the losses. I'm assuming that's just ridiculous.
Thoughts? Maybe this is too complicated and just hire a financial advisor, especially given the potential loss of the sale of stock?
Submitted January 06, 2017 at 10:54PM by mingl http://ift.tt/2i2IkUR
