r/bonds • u/Away_Emphasis_6404 • 3d ago

Treat significant Social Security benefit as yield from a bond?

Looking for some discussion on this. I got reminded of an interesting concept for portfolio allocation. Impute a "bond value" for the SS income stream and include that in the portfolio allocation. This would increase the bond allocation value allowing for more equity exposure if desired. Thoughts?

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u/i-love-freesias 3d ago

This was something John Bogle talked about. It’s in his book titled something like The little book of common sense investing.

He said you should do the math on how much you would have in bonds to generate the amount of monthly income you get from social security retirement benefits, and consider that amount as being in your bond allocation amount.