Poll:How much of an indexer are you?

[DEC-1982]

Looking through this stream I was curious what bucket you put pensions in. Are they considered bonds for calculation purposes? or are people not using them for their percentage calculations?

 

[mathjak107]

i don't count them as part of our investable assets at all.

they are kept separate like social security is in our calculations .

we subtract out pension and social security and then structure the portfolio around what we need to provide the difference .

 

[DEC-1982]

i don't count them as part of our investable assets at all.

they are kept separate like social security is in our calculations .

we subtract out pension and social security and then structure the portfolio around what we need to provide the difference .

Now that you have explained it, it makes a lot of sense. Thank you.

 

[RunningBum]

Looking through this stream I was curious what bucket you put pensions in. Are they considered bonds for calculation purposes? or are people not using them for their percentage calculations?

My intent for the poll was to not include classic pensions, because you don't have a choice to index or not. For a 401K or similar retirement plan, you usually do.

For asset allocation purposes, I calculate my allocation both without the small pension and 3/4 social security, and with them (estimated a present value figure for both and include as bonds) and keep 115-age in equities between the two values. But this is an "indexer or not" thread, not stock vs bond AA thread.

Edit: I don't want to infer that one should include pension and SS as bond income, just that I choose to. I realize many don't. Do what you're comfortable with. Again, the topic is better taken in another thread.

 

[youbet]

I know that I won't move my money around and I'll be achieving very good returns. YMMV.

I like indexing because it's so easy to move your money around and there are so many choices with totally different focuses. I can be 100% international small cap value one day and 100% USA S and P 500 the next. Or, actually, within the same day if I want.

There are so many indexes! And it's so easy to move, especially if you play the index game with ETF's.

There's nothing passive or stable about indexing! Investing passively or holding positions or AA's over long periods of time can be accomplished with index funds for sure. But indexing doesn't mean passive, stable investing. That's entirely up to the investor!

 

[DEC-1982]

My intent for the poll was to not include classic pensions, because you don't have a choice to index or not. For a 401K or similar retirement plan, you usually do.

Thanks. Sometime ago I had clicked between 65% and 85% indexing, and after redoing my calculations that is still correct.

Index (stock+bond) 72%
Non-index (stock+bond) 15%
Cash 13%

The stock bond cash split is
Stock 62%
Bond 26%
Cash 12%