Here's How a Pension Should Change Your Investment Strategy

Ready For Retirement

James Conole, CFP®

Investment Planning, Bonds, Education, Stocks, Cash, Business, Dividend Investing, Retirement Planning, Retirement, Investing, Tax Planning

5 • 706 Ratings

🗓️ 17 October 2023

⏱️ 26 minutes

🔗️ Recording | iTunes | RSS

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Summary

James debunks common misconceptions about retirement portfolio allocation and explains how to factor in your pension, social security, and other fixed-income sources into your plan. He discusses the importance of dividends in assessing investment performance, risk capacity and tolerance, and how mastering them can help determine your optimal retirement portfolio allocation. Questions answered: How should you allocate your portfolio in retirement, considering pensions, social security,...

Transcript

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0:00.0	One of the most important financial decisions you'll make in retirement is deciding what percentage of your portfolio you'll allocate to different types of stocks and bonds.
0:08.4	The right way to approach this is to base your portfolio and fit your portfolio within the context of other income sources you might have.
0:15.9	So for those of you who have pensions or social security or other fixed income sources like that, if you're not including those sources into your overall portfolio allocation,
0:24.8	you're likely doing it the wrong way.
0:27.2	So in today's episode of Ready for Retirement,
0:29.0	I'll show you how you should include social security, pension,
0:31.8	and other fixed income sources into your overall plan
0:34.5	so you can determine the right allocation for you.
0:39.2	This is another episode of Ready for Retirement. I'm your host, James Cannell, and I'm here
0:43.5	to teach you how to get the most of the life with your money. And now, on to the episode.
0:50.3	Today's episode is based on a listener question, which is great. It means that we actually get to
0:54.8	apply a very real-world scenario to see what are the principles that we should be looking at.
0:59.4	How do we apply it to this example? But more importantly, how can the rest of you apply it to
1:03.4	your individual circumstances? So let me read the question that was submitted, and then we'll
1:07.7	go through an episode to address it. This question comes from Michael, and says, hi James, fabulous podcast. Thank you for explaining complex issues in plain
1:15.6	language. By focusing on the most critical points, you allow your listener to understand better,
1:20.2	make informed decisions, and make sure we are asking the right questions. My question is this.
1:24.9	How should I think of my pension when determining the mix of stocks,
1:28.2	bonds, and guaranteed investments in my retirement account? Should I use the present value of my pension
1:32.5	and count that as guaranteed income? Can the rest of my retirement portfolio go heavier on stocks
1:37.1	because I have a pension? I have the same question on how to think about Social Security.
1:41.5	My wife and I work for the federal government. We are in our early
	...

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