Patrick
Full time employment: Posting here.
Bernstein in The Four Pillars of Investing states on p. 278 that those of us that get a regular fixed pension own, in essence a bond issued by our former employers. He says that we can capitalize that at rates between 6% and 12% (i.e. $30K/year would convert to a long bond of $30K/0.06 = $500,000) and then increase our stock holdings to reflect the "bonds" we effectively own via the pension or SS. Do any of you agree or disagree with this idea?
Thanks.
Thanks.