Jill on Money with Jill Schlesinger I Have a Pension, Do I Need Bonds?
Jan 15, 2025
Explore the intriguing idea of treating your pension like cash while contemplating riskier investments. Discover strategies for optimal retirement planning, particularly with substantial pensions and 401(k) funds. Delve into asset allocation and the potential market risks faced as you approach retirement. Learn about the importance of estate planning and preparing documents to secure your family's financial future. Get insights on balancing aggressive investment choices against the stability of pension income.
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Listener's Pension
- Brandon, a listener in his late 40s, has a pension from a large industrial manufacturer.
- Despite the pension program ending for new employees, his continues to grow, currently worth about $450,000 as a lump sum.
Pension Allocation Strategy
- Think of a guaranteed pension as cash when considering asset allocation.
- A large pension allows for a higher risk tolerance in other investments.
Higher-Risk Portfolio
- Jill Schlesinger and Mark, her co-host, agree that given Brandon's pension and its growth, a higher-risk portfolio is acceptable.
- However, they advise checking in again if the situation changes significantly.