Asset Allocation Implementation for Jane Doe

Jane Doe is a 45-year-old high-net-worth individual with a current investment portfolio valued at $3 million. She has a long-term investment horizon of 20 years before retirement, at which point she plans to withdraw 4% annually for living expenses. Jane is risk-averse and aims to preserve her capital while achieving moderate growth.

Recently, she received an inheritance of $1 million and is considering how to allocate these new funds in conjunction with her existing portfolio. Currently, her portfolio consists of 60% equities, 30% fixed income, and 10% alternative investments. The current market environment shows potential for interest rate hikes and volatility in equity markets.

Your task is to recommend an asset allocation strategy for Jane's total portfolio (existing + inheritance), focusing on the implementation specifics. Address the impact of market conditions on asset selection, tax considerations regarding her investments, and the importance of liquidity in her portfolio. Additionally, you must justify your recommendations and discuss any constraints she should address.