Extinction
Confused about dryer sheets
- Joined
- Apr 15, 2016
- Messages
- 3
My asset allocation is 60/40. As I am 57, a common recommendation is to have 57% of one's portfolio (or for simplicity, 40/60) in lower risk assets. With all the chatter of overvalued markets and my recent FIRE, I am considering making this portfolio change. My question concerns my pension which I will be recieving as a 5 year monthly annuity. Since I have 60 months of COLA'd payments coming in, this money is basically inflation protected fixed income. One could argue that since the pension is about 65% of my total portfolio my present AA is actually 20/80.
Should I be investing these monthly checks in equities to bring up my 20% to 40%? Or do I rebalance now and invest the pension as it comes in as 40/60?
Should I be investing these monthly checks in equities to bring up my 20% to 40%? Or do I rebalance now and invest the pension as it comes in as 40/60?