[chinaco]

Some look at it that way.

I believe you can view the annuity as an income stream. But having an asset allocation across bonds and a variety of equity classes and a cash reserve pool enables one to rebalance and capture some of the gains into an asset that has a lower correlation that may be down or regrouping for the next advance.

In other words. Look at the annuity (pension) as part of an income stream not as the portfolio.

Look at the portfolio as a mechanism to capture gains and buffer volatility (rebalancing between equity, bonds, and cash pool). Essentially you buy less volatility at the expense of reduced gains. The resulting benefit is cash when you need it with less chance of damaging the portfolio. That cash when you need it is the other part of your income stream that the pension does not provide.

If your $30k/year is all of the income you need... then 100% stock is not a big problem since you can wait out stock market down cycles. Even if thaqt is the case, I would pool some money into a cash (money market or short term bond) fund for consumption purposes... because it is difficult to judge the equity markets and corrections.