1. The Benefits of Household Management
We begin with all portfolios in balance
with their target allocation
Taxable Accounts Tax Deferred Accounts Household Total
Domestic stocks $57,213 53.0% $114,427 53.0% $171,640 53.0%
Internat'l stocks $7,556 7.0% $15,113 7.0% $22,670 7.0%
US Trsy bonds $39,943 37.0% $79,883 37.0% $119,825 37.0%
Cash $3,238 3.0% $6,477 3.0% $9,715 3.0%
Total $107,950 100.0% $215,900 100.0% $323,850 100.0%
Model Portfolio Targets
Domestic 53.0%
Internatinal 7.0%
US Treasury 37.0%
Cash 3.0%

2. The Benefits of Household Management
Assume that our domestic allocation grows by 15% while the
others remain flat.
Taxable Accounts Tax Deferred Accounts Household Total
Domestic stocks $60,950 56.5% $121,900 56.5% $182,850 56.5%
Internat'l stocks $7,000 6.5% $14,000 6.5% $21,000 6.5%
US Trsy bonds $37,000 34.3% $74,000 34.3% $111,000 34.3%
Cash $3,000 2.7% $6,000 2.7% $9,000 2.7%
Total $107,950 100.0% $215,900 100.0% $323,850 100.0%
Model Portfolio Targets
Domestic 53.0% The portfolios are now out of
Internatinal 7.0%
US Treasury 37.0% balance beyond our tolerance and
Cash 3.0% must be re-balanced

3. The Benefits of Household Management
We use the lowest cost method to
re-balance your portfolio
Taxable Accounts Tax Deferred Accounts Household Total
Domestic stocks $60,950 56.5% $110,690 51.3% $171,640 53.0%
Internat'l stocks $7,000 6.5% $15,670 6.5% $22,670 7.0%
US Trsy bonds $37,000 34.3% $82,824 34.3% $119,824 37.0%
Cash $3,000 2.7% $6,716 2.7% $9,716 3.0%
Total $107,950 100.0% $215,900 100.0% $323,850 100.0%
Model Portfolio Targets
Domestic 53.0% One sale, Two Buys
Internatinal 7.0%
US Treasury 37.0% NO Taxes and Commissions of $27
Cash 3.0%

4. The Benefits of Household Management
Most managers re-balance
accounts individually
Taxable Accounts Tax Deferred Accounts Household Total
Domestic stocks $57,213 53.0% $114,427 53.0% $171,640 53.0%
Internat'l stocks $7,557 7.0% $15,113 7.0% $22,670 7.0%
US Trsy bonds $39,941 37.0% $79,833 37.0% $119,824 37.0%
Cash $3,239 3.0% $6,477 3.0% $9,716 2.7%
Total $107,950 100.0% $215,900 100.0% $323,850 100.0%
Model Portfolio Targets
Domestic 53.0% Two Sales, Four Buys
Internatinal 7.0%
US Treasury 37.0% $920 in Taxes and Commissions
Cash 3.0%