Need answers on asset allocation
Have 401K valued at near $700,000. About 60% equities ($420,000) and 40% cash/bonds $280,000).
I am 51 years old. Following traditional wisdom using the 110-120 rule, I should have about 31-41% of my portfolio in cash or bonds. My question is... if you subscribe to this method of asset allocation, should I also be including my cash balance pension in the equation? this has a value of $290,000. So should I really be saying I have a portfolio of $990,000 with $570,000 in cash/bonds.... If yes, then I am seriously over weighted in cash.