Hi everyone, I would appreciate your advice.
I’m about to put together a portfolio for my retired mom. She has around 500k to invest and would like to stay on the safe side. She is 67, and she needs to draw 20k every year in oder to close the gap to her expenses. She’s received offers from ZKB and VZ to manage her account. While both did a decent job analysing her situation, they take 1.3 and 1.45 percent each year for wealth management, excluding costs for the fonds! Plus they came up with really complicated portfolios, featuring 15 positions and more. Wealth mgt expenses sum up to around a third (CHF 6000-7000) of her annual extra need, which I think is completely out of proportion.
I was thinking a 50:50 portfolio. For the equities, I would choose something along the lines of 25% All World ETF, 20% SMI and 5% Emerging Markets (iShares or Vanguard). On the fixed-income side, however, I am undecided. In the current situation, I think I would go for 40% in cash and 10% CH corporate bond FTE. Once interests are higher, I would inverse that ratio, thus moving toward 40% CH bond FTE and 10% cash.
What are your opinions on this approach and what bond FTE would you recommend to me? Thanks for any input.