My client has eight financial accounts with Plaid:
- Plaid Checking
- Plaid Saving
- Plaid CD
- Plaid Credit Card
- Plaid Money Market
- Plaid IRA
- Plaid 401k
- Plaid Student Loan
My client has a gross yearly income of $6000, and a monthly income of $500. My client's projected yearly income is $6085.
Over the past three months, my client spent a total of $31935.72, spending an average of $10645.24 per month. Roughly 70% of these expenditures were spent on transfers, followed by payments, and transactions on food/drinks and shopping.
Given that my client is outspending their monthly income by an average of $10145.24, it is my strong recommendation that my client severaly curb their spending.
I've put together a model portfolio that I feel may benefit my client. This portfolio contains both the SPY and AGG funds with respective weightings of 60% and 40%.
Running a Monte Carlo analysis, I project that this portfolios should produce a return between 49% and 180% within a 10th and 90th confidence interval over the next 30 years.
If my client were to invest $20000 in this portfolio, this would equate to a return between $9800 and $36000. With a 4% withdrawal rate in retirement, this portfolio should exceed the needs of my clients expenditures. There is no need to invest more in this portfolio than $20000.