BGLASGAL
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A friend of mine, in determining his bonds/equities asset allocation, backs into his equities allocation by including his pension present value as part of his fixed income(bond) portion of his allocation. This leads to a lower equity percentage than when determined in a conventional manner of only considering deployable assets. I haven't heard of this viewpoint before. What's the general consensus pro and con?
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Fri Apr 06, 2007 5:17 pm |
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BGLASGAL
New Poster
Cash: $ 0.45
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Joined: 06 Apr 2007
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It is a defined benefit pension, so I guess you are an advocate of including it as part of the Bond/Fixed Income allocation. This would cause one to significantly increase the equity portion of the deployable assets.
Now regarding the rule of thumb 100-age=% bonds/fixed income, would you back into the percent equities by reversing the equation while including the pension in the B/FI portion?
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Fri Apr 06, 2007 5:43 pm |
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