Reply To: Pension in a diversified portfolio
I read an article on Fidelity’s site that addressed a similar issue, where a couple had their retirement savings entirely in stocks and were treating their Social Security as the bond component.
Here’s what the article boils down to:
But when it comes to investing your retirement nest egg, you should focus on these two real-world questions: Would I be comfortable with the way my retirement savings are invested if the stock market nosedives? Or would I be selling stocks in a panic in search of safety and ruing the day I began thinking of Social Security as a bond?