Hello All:
How do you account for a personal residence that is owned when allocating your assets. I have seen some posters inicate that they have 55% of their assests in equities. For the sake of simplicity lets say a person owned their home with a value of 200,000 and had other investable assets of 800,000 including retirement accounts, 401K's, IRA and regular accounts.
How do you account for the house? Is 55% 550,000 or 440000 ? the 200K in the house is not at risk based on equity performance.
Then if the person has a private pension that will pay them 30K a year do you consider that in this formula, for example it takes 600K at 5% to generate 30K of income. The more I conteplate it the more I get confused. I better stop now.
Edgar
How do you account for a personal residence that is owned when allocating your assets. I have seen some posters inicate that they have 55% of their assests in equities. For the sake of simplicity lets say a person owned their home with a value of 200,000 and had other investable assets of 800,000 including retirement accounts, 401K's, IRA and regular accounts.
How do you account for the house? Is 55% 550,000 or 440000 ? the 200K in the house is not at risk based on equity performance.
Then if the person has a private pension that will pay them 30K a year do you consider that in this formula, for example it takes 600K at 5% to generate 30K of income. The more I conteplate it the more I get confused. I better stop now.
Edgar