Search found 39 matches

by ztn
Fri Jan 25, 2019 2:10 pm
Forum: Personal Finance (Not Investing)
Topic: 1099-R Inherited IRA: Is this surprising?
Replies: 17
Views: 1933

Re: 1099-R Inherited IRA: Is this surprising?

You are fine. Just report it on your 2018 tax return as a 100% rollover to a new custodian (in the IRA distribution section of the software). Alan S. often warns that no forms should have been generated when you move from custodian to custodian, but they often are, and custodians will rarely un-do them. Personally, I like the confirmation of where/when the money was transferred since I won't be able to remember this 10 years down the road. The value of the distribution on this 1099-R from the old custodian and the value of the "rollover contribution" received by the new custodian, which will be reported on a Form 5498 in May, will match, thus making the IRS happy. :D Celia, you may not have noticed that this was a non spouse inhe...
by ztn
Fri Jan 25, 2019 12:47 pm
Forum: Personal Finance (Not Investing)
Topic: 1099-R Inherited IRA: Is this surprising?
Replies: 17
Views: 1933

Re: 1099-R Inherited IRA: Is this surprising?

I'm pretty sure we treat this as a rollover, so no tax is due. But I was wondering if the 1099-R makes sense/ was done correctly. . You are fine. Just report it on your 2018 tax return as a 100% rollover to a new custodian (in the IRA distribution section of the software). Alan S. often warns that no forms should have been generated when you move from custodian to custodian, but they often are, and custodians will rarely un-do them. Personally, I like the confirmation of where/when the money was transferred since I won't be able to remember this 10 years down the road. The value of the distribution on this 1099-R from the old custodian and the value of the "rollover contribution" received by the new custodian, which will be repor...
by ztn
Tue Jul 03, 2018 9:33 pm
Forum: Personal Investments
Topic: What happens if your Vanguard account has been hacked.
Replies: 21
Views: 9549

Re: What happens if your Vanguard account has been hacked.

JBTX wrote: Tue Jul 03, 2018 9:21 pm If a sizable sum was stolen and vanguard was made the investor eat it then that would be in the wsj and every other publication and ultimately investors would flee vanguard.
And he'd still be out $1 million.
by ztn
Tue Jun 05, 2018 11:46 am
Forum: Investing - Theory, News & General
Topic: Best case to convert a Bogle skeptic?
Replies: 56
Views: 6537

Re: Best case to convert a Bogle skeptic?

How about using real dollar amounts with him instead of percentages. 2.2% can be an abstract concept. For instance, if his assets are $5 million, ask him if he thinks he can do better than paying $110,000 each year for financial advice. Ask him if he writes a check for $110,000 for ANY personal goods or services, let alone spending $110,000 each and every year.
by ztn
Wed Apr 04, 2018 1:32 pm
Forum: Personal Finance (Not Investing)
Topic: Advice for using credit card for auto rental insurance
Replies: 25
Views: 3796

Re: Advice for using credit card for auto rental insurance

If you have an umbrella policy, it may cover your liability in a rental if there is no other coverage. When renting a car in Europe, our umbrella would've covered liability, while our personal car insurance would not as it is limited to US and Canada. As the owner of the car, the rental company may be required to carry at least some liability coverage. See under "Supplemental Liability Protection", here: https://www.consumeraffairs.com/travel/carrent_ins.html If you rent a lot and don't have umbrella insurance, there are non-owner's policies for liability coverage. I don't have an umbrella policy. I don't have non-owner's coverage either. I don't really rent much, but all it takes is a single accident to have major damage. So for...
by ztn
Wed Apr 04, 2018 1:28 pm
Forum: Personal Finance (Not Investing)
Topic: Advice for using credit card for auto rental insurance
Replies: 25
Views: 3796

Re: Advice for using credit card for auto rental insurance

Second, does the credit card coverage have the mechanics of traditional car insurance coverage? What I mean by this is: do they handle the entire damage and payment process from soup to nuts? Car rental agency will send you a bill. You will have to work with the credit card to get the claim process moving along. My only experience with actually using the credit card rental insurance was that it was completely a reimbursement transaction. The rental car company didn't care about my credit card rental coverage - their bill was to me, and me only, for > $10,000 in damages. Fortunately the car that hit me was held at fault and their insurance paid. But once again, does anyone have actual experience with a substantial credit card rental claim w...
by ztn
Tue Apr 03, 2018 5:57 pm
Forum: Personal Finance (Not Investing)
Topic: Advice for using credit card for auto rental insurance
Replies: 25
Views: 3796

Re: Advice for using credit card for auto rental insurance

Thanks. I assumed that I must still opt in for the rental's liability coverage since I have none of my own and the credit card doesn't cover it.

Does anyone know if the credit card collision coverage is still reimbursement and if so does anyone have any recent experience using it to counter my horror from 20 years ago?
by ztn
Tue Apr 03, 2018 5:38 pm
Forum: Personal Finance (Not Investing)
Topic: Advice for using credit card for auto rental insurance
Replies: 25
Views: 3796

Advice for using credit card for auto rental insurance

I have several credit cards that indicate that they offer insurance for rentals. I have several questions: First, according to my credit card (Chase Freedom, for instance) they provide auto rental collision damage - auto rental CDW. It covers theft and damage to the rental provided I used the card for the rental and declined the rental company collision insurance. Sounds good. But what about liability insurance? I do NOT have a car and therefore do NOT have any auto insurance of my own, so I don't have any other liability coverage. Does this mean that I should decline the collision coverage but must opt in for the liability? Second, does the credit card coverage have the mechanics of traditional car insurance coverage? What I mean by this i...
by ztn
Tue Mar 27, 2018 6:42 pm
Forum: Personal Finance (Not Investing)
Topic: Personal Excess Liability Insurance - Umbrella Insurance
Replies: 55
Views: 5974

Re: Personal Excess Liability Insurance - Umbrella Insurance

One of my buddies that I estimate his net worth at around 5 million buys 2 million in umbrella protection. He figures that he will get a vigorous enough defense from the insurance company for them to protect the 2 million, that is remaining three will also be safe. There are not three remaining, there are five. And his plan doesn't sound good to me. He is betting that the plaintiff's attorney will settle for $2 million rather than take him to court with the chance to collect $7 million. Using your logic, if he has $5 million in umbrella coverage he is betting that the plaintiff's attorney will settle for $5 million rather than take him to court with the chance to collect $10 million. This is why it has always been puzzling to me for one to...
by ztn
Mon Mar 19, 2018 11:55 am
Forum: Personal Finance (Not Investing)
Topic: Ever received a legitimate unsolicited call from the I.R.S.?
Replies: 24
Views: 3040

Re: Ever received a legitimate unsolicited call from the I.R.S.?

PVW wrote: Mon Mar 19, 2018 11:49 am
ztn wrote: Mon Mar 19, 2018 11:46 am I did. I followed their specific instructions, sent them the required gift cards and it seems to have resolved the issue to their satisfaction.
You can probably expect a call next year too.
At first blush it is hard to believe that anyone falls for these scams but it is clearly a big problem. My father is now much slower, both physically and with some cognitive/speech issues. A fast talking scammer has a potential advantage with him if they are aggressive enough.
by ztn
Mon Mar 19, 2018 11:46 am
Forum: Personal Finance (Not Investing)
Topic: Ever received a legitimate unsolicited call from the I.R.S.?
Replies: 24
Views: 3040

Re: Ever received a legitimate unsolicited call from the I.R.S.?

I did. I followed their specific instructions, sent them the required gift cards and it seems to have resolved the issue to their satisfaction.
by ztn
Tue Mar 13, 2018 11:17 am
Forum: Investing - Theory, News & General
Topic: Is the investment-grade vs. junk bonds divide arbitrary?
Replies: 16
Views: 2507

Re: Is the investment-grade vs. junk bonds divide arbitrary?

As others have noted, the dividing line of BBB and BB is arbitrary and the tradition goes back decades. HOWEVER, there is a very real price effect when a bond gets downgraded below BBB- or upgraded to above BB+. A big reason for this is related to large institutional investors who have legal constraints related to minimum bond ratings for their bond portfolio holdings. That's why is is quite common to see a significant point drop on a downgrade below BBB- and a significant spike up in price on an upgrade above BB+. In many cases this price action occurs even though it is well understood in advance and even expected that the rating agencies will be re-rating the bond up or down. The legal-listed institutional holders of the bonds are forced ...
by ztn
Sun Nov 05, 2017 9:56 pm
Forum: Investing - Theory, News & General
Topic: Does Blackrock think it's all a game?
Replies: 33
Views: 6047

Re: Does Blackrock think it's all a game?

Ukraine is game to you?
by ztn
Wed Nov 01, 2017 12:29 pm
Forum: Investing - Theory, News & General
Topic: Matching bond duration to....?
Replies: 17
Views: 2324

Re: Matching bond duration to....?

What I don't get is, say you invest in BLV, it goes up, then down, all over the place for 15 years....then in year 17 (three years from retirement) the fund is up. At this point, why would you stay in the fund? Why do bond funds go down? It is because interest rates have gone up. As a rule of thumb if a fund has a duration of 15 years it should be able to make up the loss of principle (lower share price) with higher interest rates (income) within those 15 years. Lots of fiddly assumptions but that is the general idea. I understand that. My question is in regard to that statement that i always see posted in this forum. I get the rule of thumb. My point is then what? When you break even 15 years later sell it and buy TBM? I just don’t unders...
by ztn
Sat Oct 28, 2017 4:12 pm
Forum: Investing - Theory, News & General
Topic: 91, 01, 09. Then 19? [Year for next market crash]
Replies: 27
Views: 3542

Re: 91, 01, 09. Then 19? [Year for next market crash]

Actually, 1991 was a fantastic year for market returns! You probably meant 1990, but does that ruin the logic?

And you probably meant 2008, not 2009.
by ztn
Thu Oct 12, 2017 2:12 pm
Forum: US Chapters
Topic: Brooklyn, NY Meetup
Replies: 13
Views: 3622

Re: Brooklyn, NY Meetup

ny_rn wrote: Sun Oct 08, 2017 11:19 am Any Bogleheads located in Brooklyn, NY? If so, who would be interested in getting together to grab a bite to eat and talk investing, etc?
I'd love to attend as I'm in the vicinity.
by ztn
Tue Oct 10, 2017 4:47 pm
Forum: Personal Finance (Not Investing)
Topic: What specific changes have you made post-Equifax?
Replies: 52
Views: 6677

Re: What specific changes have you made post-Equifax?

DiggleRex wrote: Tue Oct 10, 2017 4:44 pm
skjoldur wrote: Tue Oct 10, 2017 3:27 pm FWIW, you can edit the account names in Google Authenticator. It seems to me like a bad idea to have it actually list the full name of the account.
How?? I have it installed on an android phone and see no way to do this. Thanks.
I just did it myself: Go into the app. The screen will list the different accounts. Press and hold any account. You will now see an edit icon on the bar - top right. Edit the name of the account. Repeat for each account listed.
by ztn
Tue Oct 10, 2017 3:39 pm
Forum: Personal Finance (Not Investing)
Topic: What specific changes have you made post-Equifax?
Replies: 52
Views: 6677

Re: What specific changes have you made post-Equifax?

skjoldur wrote: Tue Oct 10, 2017 3:27 pm
ztn wrote: Tue Oct 10, 2017 2:53 pm even if he opens the Google Authenticator app it will only list the accounts I use the app with.
FWIW, you can edit the account names in Google Authenticator. It seems to me like a bad idea to have it actually list the full name of the account.
Thanks - I just renamed each of the account names in the app! This greatly helps in masking the accounts in case I lose the phone!
by ztn
Tue Oct 10, 2017 2:53 pm
Forum: Personal Finance (Not Investing)
Topic: What specific changes have you made post-Equifax?
Replies: 52
Views: 6677

Re: What specific changes have you made post-Equifax?

Yes, for the GV Gmail account I use Google Authenticator for 2FA. If I lose my cell phone - which is connected to the Google Authenticator - I have 10 backup emergency codes from Gmail that I have stored in several safe places. So even if your cell phone was compromised and they gained access to the special gmail account, there wouldn't be anything of value to them there. Now I understand it. I might do that too. I don't see how a cell phone thief would gain access to my Gmail account - I don't connect to it using my cell phone. I believe the risk to my Gmail account is very limited if I lose my cell phone: the only connection is the Google Authentcator app. The app lists my Gmail account but doesn't indicate the Google Voice number associ...
by ztn
Tue Oct 10, 2017 1:36 pm
Forum: Personal Finance (Not Investing)
Topic: 2 factor authentication - What if something happens to you?
Replies: 50
Views: 7930

Re: 2 factor authentication - What if something happens to you?

I have an extensive "death book" entitled "Everything You Need To Know To Handle My Estate" in excel which contains all the information my executor will ever need to quickly and efficiently handle my estate (including access to PW, backup access information, and a whole lot of other details). The excel workbook is stored digitally via 5 diversified storage devices, both at home and off site. I modeled it on the downloadable excel workbook on this site: http://www.erikdewey.com/bigbook.htm This! I have a folder entitled "Information for the Estate of Ztn". My executor has been shown where it is located. In the event of a fire or disaster, my executor knows who my lawyer is and my lawyer has copies of the will a...
by ztn
Tue Oct 10, 2017 1:27 pm
Forum: Personal Finance (Not Investing)
Topic: What specific changes have you made post-Equifax?
Replies: 52
Views: 6677

Re: What specific changes have you made post-Equifax?

The way I did it was to create a new Gmail account. I then created a Google Voice number associated with the Gmail account. I use the Gmail account for nothing at all other than the GV number. I set up the GV number to send any SMS message to the new Gmail account as an email. So to answer your question - I read the 2FA by logging into my associated Gmail account. The GV number does not need to be 'connected' to phone 'line' at all. Thanks for the explanation. Do you use 2FA to login to your new Gmail account, and if so, how? Yes, for the GV Gmail account I use Google Authenticator for 2FA. If I lose my cell phone - which is connected to the Google Authenticator - I have 10 backup emergency codes from Gmail that I have stored in several sa...
by ztn
Tue Oct 10, 2017 1:20 pm
Forum: Personal Consumer Issues
Topic: cash and landlines in disasters
Replies: 21
Views: 3454

Re: cash and landlines in disasters

These topics have come up before, but just to emphasize: I've been following the California fire situation and one town I have friends in has no power and the local newspaper said as a result things can only be bought with cash - no credit cards, no debit cards. Also in the area one friend is in, only landlines are working. I rant again about why phone companies should not be allowed to do away with landline service. I live in the NYC area and I learned lessons from both the 2003 blackout and 2012 Hurricane Sandy. In the blackout, ATM's didn't work and credit cards were useless. I was able to buy food/groceries with the cash I had at the time. Cash was extremely valuable! The power was out even longer after Hurricane Sandy and by that time...
by ztn
Tue Oct 10, 2017 1:08 pm
Forum: Personal Finance (Not Investing)
Topic: What specific changes have you made post-Equifax?
Replies: 52
Views: 6677

Re: What specific changes have you made post-Equifax?

I signed up for a free Google Voice number and set it so it cannot be ported at all. I then changed all 2FA to the GV number and removed my cell number to eliminate the problem of losing access to any 2FA's if my cell number is ported unbeknownst to me or if I just lose my phone. I don't/won't use this GV number anywhere else. With Google Voice, do you read the 2FA by logging in to your Google Voice account on a computer or tablet? Does a Google Voice number need to be connected to at least a phone land line? Thanks The way I did it was to create a new Gmail account. I then created a Google Voice number associated with the Gmail account. I use the Gmail account for nothing at all other than the GV number. I set up the GV number to send any...
by ztn
Mon Oct 09, 2017 9:33 pm
Forum: Personal Finance (Not Investing)
Topic: What specific changes have you made post-Equifax?
Replies: 52
Views: 6677

Re: What specific changes have you made post-Equifax?

- I had already frozen my credit > 10 years ago at Equifax, Experian and Trans Union. Last month I ordered my credit reports from Innovis and Chexsystems and then froze at both. Still waiting for the PIN's for the last two. - Re-thought my use of emails as others have done. I now have one email account dedicated to financial activities, one email account dedicated to non-financial web-based subscriptions (Amazon, Ebay, etc.), one email account dedicated to personal correspondence, and one email account dedicated to business (or what remains of such activities post-FIRE). - I signed up for a free Google Voice number and set it so it cannot be ported at all. I then changed all 2FA to the GV number and removed my cell number to eliminate the p...
by ztn
Fri Sep 22, 2017 9:23 am
Forum: Personal Finance (Not Investing)
Topic: Credit freeze or fraud alert?
Replies: 19
Views: 2383

Re: Credit freeze or fraud alert?

Tycoon wrote: Fri Sep 22, 2017 8:43 am From our personal experience(s) fraud alerts are worthless.
This! A credit freeze is near 100% effective in preventing new, fraudulent, credit in your name since lenders or credit card companies will nearly always check your credit before approving the loan/card. It is possible that a credit check is not performed but I haven't heard or read of this.

A fraud alert sounds good until you realize there is no legal obligation for any credito to use them or rely on them. The internet is littered with cases of fraud alerts simply being ignored. A simple google search will confirm this.

I went with the credit freezes (years ago) and haven't bothered with the alerts.
by ztn
Mon Sep 11, 2017 6:10 pm
Forum: Personal Consumer Issues
Topic: Equifax - credit freeze is now free?
Replies: 64
Views: 11760

Re: Equifax - credit freeze is now free?

So what's the point of a free year of credit monitoring? It's not like credit card numbers or passwords were stolen... Social security numbers with all the other information will be on the dark web in perpetuity. What's the point of monitoring, they already have your info. This breach is a game changer. Can you change your social security number? What also gets me is this major breach was barely mentioned on the news. +1 This - exactly! The Equifax breach is so different from a hack on a store like Target. The Equifax breach isn't really about credit at all - it's so much more than that. Since my name, date of birth and SS# won't change or ever expire, I will forever have the risk of a crafty thief using my info to commit crimes or steal i...
by ztn
Mon Sep 11, 2017 5:53 pm
Forum: Personal Consumer Issues
Topic: Equifax - credit freeze is now free?
Replies: 64
Views: 11760

Re: Equifax - credit freeze is now free?

So what's the point of a free year of credit monitoring? It's not like credit card numbers or passwords were stolen... Social security numbers with all the other information will be on the dark web in perpetuity. What's the point of monitoring, they already have your info. This breach is a game changer. Can you change your social security number? What also gets me is this major breach was barely mentioned on the news. +1 This - exactly! The Equifax breach is so different from a hack on a store like Target. The Equifax breach isn't really about credit at all - it's so much more than that. Since my name, date of birth and SS# won't change or ever expire, I will forever have the risk of a crafty thief using my info to commit crimes or steal i...
by ztn
Sun Aug 27, 2017 10:13 am
Forum: Investing - Theory, News & General
Topic: Effect of duration rate on bond funds
Replies: 21
Views: 3333

Re: Effect of duration rate on bond funds

ZTN, I think you are missing the thrust of my post. I have seen the sausage being made up close. I will concerned every point you have made and then some. I have seen rival analytic teams in the same fund family come up with different durations for the same bond. Macaulay is, in my opinion, the worst duration measure out there. My point is that the published information does not come from the portfolio managers, it comes from operations. Operations is responsible in churning out all of the regulatory reports, including reporting duration numbers. Operations are pretty well insulated from the portfolio managers. Yeah dual controls! Operations are run by accountants. The SEC requires that the duration formula and all inputs be archived. They...
by ztn
Sat Aug 26, 2017 11:51 pm
Forum: Investing - Theory, News & General
Topic: Effect of duration rate on bond funds
Replies: 21
Views: 3333

Re: Effect of duration rate on bond funds

There are different notions of duration. The notion normally reported for bond mutual funds is "modified duration". Why do you say this? In my experience it has always been Macaulay. I have to program this for mutual fund fact sheets. I was told to use Macaulay because the industry survey says that is what it is. 2 stray observations. First, I would think it would be Macaulay because there are fewer subjective inputs. If you are going to use Modified you have to build a yield curve which has lots of subjective choices and the SEC does not like subjective choices. Second, it is the accountants, not portfolio managers who generate the numbers. Accountants tend to have a pretty fuzzy notion of what duration actually is. Far lower th...
by ztn
Tue Aug 08, 2017 4:55 pm
Forum: Personal Finance (Not Investing)
Topic: Should I hold bond fund for period equal to duration?
Replies: 16
Views: 1719

Re: Should I hold bond fund for period equal to duration?

I think you are confusing duration with maturity. Duration is a measurement of interest rate risk. If you invest in a bond fund with a 6 year duration, after six years (assuming no changes in rates) the fund will still have a duration of 6 years. The duration of the fund will not decrease over time (assuming rates stay same). Your interest rate risk will be the same at the beginning of your holding period as it is at the end.
by ztn
Wed Jul 26, 2017 7:30 pm
Forum: Investing - Theory, News & General
Topic: Are bitcoins nonsense?
Replies: 73
Views: 9259

Re: Are bitcoins nonsense?

inbox788 wrote:
Irregardless, the proliferation of cryptocurrencies sure does seem like it's in some sort of bubble.
Sorry - I couldn't help myself: https://www.youtube.com/watch?v=Q8mD2hsxrhQ
by ztn
Sat Jun 24, 2017 8:44 pm
Forum: Personal Investments
Topic: Is my pension a Fixed asset?
Replies: 37
Views: 7809

Re: Is my pension a Fixed asset?

If the pension fund fails, the shortfall might not be made up at all. Permanent haircuts might be made instead. Look at Illinois and New Jersey. A tax increase won't be enough to make the pension plans solvent. And if the equity markets decline enough to cause haircuts for the pension plan, a large equity allocation for investments outside of the pension plan will only hurt more and provide insufficient diversification.
by ztn
Sat Jun 24, 2017 5:09 pm
Forum: Personal Investments
Topic: Is my pension a Fixed asset?
Replies: 37
Views: 7809

Re: Is my pension a Fixed asset?

I have suggested this before: If you have a public pension you need to consider the underlying investments of the pension fund itself. Most public pension funds are 60-70% equity. If the equity markets decline significantly the pension fund's financial health will be hit. That is hardly a fixed income vehicle. Therefore I suggest you consider the pension to be up to 70% equity, far from the 100% fixed income most suggest. As a result, your personal investments should likely have increased fixed income holdings.
by ztn
Mon May 29, 2017 2:08 pm
Forum: Personal Consumer Issues
Topic: Mouse In Apartment
Replies: 55
Views: 8851

Re: Mouse In Apartment

Username checks out.
by ztn
Sat Apr 15, 2017 5:45 pm
Forum: Personal Consumer Issues
Topic: What do you do with your coins?
Replies: 76
Views: 8120

Re: What do you do with your coins?

I still use cash for all grocery and everyday purchases. Any change in my pocket is used to prevent more change - if the total is $9.68 and I have 13 cents, I give the cashier $10.03. Extremely simple technique and when done correctly I will never have more than one dollar in change in my pocket.
by ztn
Sat Apr 01, 2017 1:24 pm
Forum: Investing - Theory, News & General
Topic: Why do REITs have high growth if housing only keeps up with inflation?
Replies: 19
Views: 2754

Re: Why do REITs have high growth if housing only keeps up with inflation?

Don't ignore the powerful effect of the long bull market in long-term interest rates. Commercial RE cap rates have declined in tandem with interest rates. This is why long-term bond rates are vital to REIT returns. When long rates increase, look out.
by ztn
Sat Apr 01, 2017 12:54 pm
Forum: Personal Investments
Topic: 100% stocks w/pension?
Replies: 40
Views: 7068

Re: 100% stocks w/pension?

The NYC pension funds are 'guaranteed' by the NY State constitution which states that once vested a pension can't be diminished or impaired. HOWEVER, the NY State constitution does get reviewed every 20 years if voters approve. The vote just happens to be this year in November on whether to convene the constitutional convention. Public sector unions are strongly urging their membership to vote 'No' - this way there is no convention and no possible legal change to pensions. If voters vote 'Yes', there will convene a constitutional convention next year and ANY NY State law is then up for grabs. Fun times!
by ztn
Sat Mar 25, 2017 9:44 pm
Forum: Investing - Theory, News & General
Topic: Justification for Adding REITs
Replies: 78
Views: 13253

Re: Justification for Adding REITs

What is the correlation of REITs with 10 year Treasuries? With Intermediate corporate bonds? Long-term corporate bonds? I expect these correlation are more relevant than just looking at an overall equity market correlation since REITs, IN THE SHORT RUN, move more directly with longer rates. And with higher vol than equities AND low levels of interest rates overall (resulting in higher expected int rate vol plus higher equity vol), it seems to me like a very strange sub-sector to focus on.
On the other hand, IN THE LONG RUN, REITs should be fine. But if equities are also fine in the long run, why bother with REITs at all given the supercharged interest rate AND equity vol?
by ztn
Sat Mar 25, 2017 9:20 pm
Forum: Personal Investments
Topic: 100% stocks w/pension?
Replies: 40
Views: 7068

Re: 100% stocks w/pension?

I will suggest a contrary point of view (based on responses thus far): Your NYC govt pension is largely dependent on the solvency of the NYC pension fund and NYC itself. The NYC pension fund is nearly 70% invested in equities. Further, NYC gets a significant share of its municipal revenue from a healthy stock market - both directly from taxes and and indirectly from real estate tax revenue. So, if the equity markets decline significantly both the pension fund and the city's financial health will be hit. Therefore I suggest you consider the pension to be equity, not fixed income, and to significantly overweight your personal holdings to fixed income.