John Doe is a Mindful Traditionalist Moderate $($Firm X SMA strategy$)$ client at Firm X$.$ He

needs to take a required minimum distribution $($RMD$)$ of $$5,000$ this year, which he will

send to his checking account at Chase. Note that the $$5,000$ is inclusive of what will be

withheld for taxes and what will be received by the checking account at Chase. The

client has three accounts. One account is a taxable account, one is a Roth IRA, and one

is a regular IRA $($think about from which accounts RMDs are taken$).$ Use the client

holdings and model allocation listed below and determine what to buy or sell to

accommodate this request and rebalance the portfolio where cost effective $($round all

trade amounts to the nearest $$100$

Keep in mind that commissions on mutual fund trades $($MF$1,$ MF$2,$ etc.$)$ are $$25$ and

commissions on ETFs $($ETF$)$ are $$7\mathrm{.}95$ and that you generally want to avoid paying a

commission that is more than $1\%$ of the principal amount of the trade. Also try to keep

allocations for the entire household within plus or minus $15\%$ of the target. This means

that if the target allocation for a position is $5\%,$ the acceptable range is $4\mathrm{.}25\%$ through

$5\mathrm{.}75\%.$

Taxable Account

MF$1$ $$33,129$

MF$2$ $$1,267$

MF$3$ $$3,374$

Cash $$2,397$

IRA Account

MF$1$ $$23,206$

MF$4$ $$24,490$

MF$5$ $$12,305$

ETF $$6,121$

MF$6$ $$7,541$

MF$2$ $$21,683$

MF$7$ $$11,071$

MF$3$ $$61,182$

Cash $$1,167$

Roth IRA Account

MF$1$ $$30,840$

MF$8$ $$4,050$

ETF $$1,842$

MF$3$ $$15,049$

Cash $$1,881$

Target Allocation $($Try to keep cash close to $1\%$ of each account's value if possible$)$

MF$132\mathrm{.}2\%$

MF$49\mathrm{.}2\%$

MF$54\mathrm{.}6\%$

MF$82\mathrm{.}0\%$

ETF $3\mathrm{.}0\%$

MF$64\mathrm{.}0\%$

MF$210\mathrm{.}0\%$

MF$75\mathrm{.}0\%$

MF$329\mathrm{.}0\%$

Cash $1\mathrm{.}0\%$

Total $100\mathrm{.}0\%$