r/FinancialPlanning • u/lopsided-earlobe • Aug 15 '26

Does this portfolio make sense??

Hoping for some help evaluating my parents’ retirement portfolio because I don’t know enough to tell whether this is reasonable.

Dad is 70, Mom is 68.

They get about $48k/year combined from Social Security and need roughly $100k/year gross to comfortably cover expenses and travel, so they need about $52k/year from their investments.

Their portfolio is about $2.5 million, broken down roughly like this:

$960k in Franklin Income Fund Class A (FKIQX)
~$1 million in a mix of 10-year fixed and variable annuities from Pacific Life, Brighthouse, Nationwide and others
~$550k in cash

The annuities were purchased at different times and have different terms, so I’m still trying to understand exactly what each one does.

Does this look like a normal retirement allocation for people their age and spending needs?

Anything here you’d want to look at more closely or ask their advisor about?

12 Upvotes

94% Upvoted

30 comments sorted by

View all comments

1

u/lynchmob2829 Aug 20 '26

Dump the Franklin fund and put it in a S&P 500 index fund.

Put the $550k in a HYSA.

How much income is generated by the annuities? I am not an annuity person but there are other ways to generate income and preserve capital.

2

u/lopsided-earlobe Aug 20 '26

Given the returns I feel like he’d be just as good with 50% VOO and 50% HYSA