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Pension Value within an Asset Allocation
fmfbc 05-09-2007, 6:22 PM | Post #200113 | 
I've recently read that to consider the value of a pension in one's asset allocation, use the monthly pension $ amount and convert it into the cost of purchasing a lifetime annuity. Then include this "cost of purchasing an annuity" in the bond portion of one's asset allocation.

If so, this process prudently allows one to increase the amount of the nest egg to invest in the stock portion of an asset allocation.

As a retiree, my point is that I'm concerned my current conservative asset allocation (omitting my pension) is now "ultra" conservative and not wise.

Could others please comment. Thanks in advance!

Originally posted in thread: 3034
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