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Berkshire Hathaway Inc. Message Board

  • axpkocop axpkocop Jan 14, 2014 3:56 PM Flag

    Grandma's Returns from full service broker-10% in 2013

    It's invested in two Franklin funds-with 60% being in bonds and the balance in a stock fund.

    The account I manage for her was up 16.5% but it was hurt last year from covered call writing. According to Schwab-her 5 year return was up 14% per year-that's from 01/01/2009-12/31/2013. The S&P 500 did 17.93% for the same period. This account is almost to the point where it generates enough dividend and interest income for her to live on. All she needs to do is purchase a few more high yielding convertible preferred stocks that are also federally tax free, with any proceeds from stock trades and she's there.

    Currently her full service brokerage account provides her with 75% of her cash needs and should last another 7-9 years before it's depleted. The account I run for her is now over three times larger than that account and only provides her with 25% of her living needs. So it also generate lot's of free cash flow without selling any stocks.

 
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