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Exclude Pensions From Allocation
- Treat guaranteed pension income like Social Security: exclude it from your portfolio allocation.
- Subtract the pension from your income need and build a portfolio to fund the remaining shortfall.
Cash Balance Plans Need Inclusion If Big
- If a cash balance plan will be rolled to an IRA/401(k), treat it as an account you may include in allocation.
- If it's large, get the plan's actual stock/bond mix and include it in your overall allocation math.
Classify REITs As Stocks
- Publicly traded REITs are equities, not fixed income, so count them toward your stock sleeve or a dedicated real estate allocation.
- Expect higher volatility and sector concentration compared with broad stocks or bonds.