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Hi All,
I’m am a graduating fellow who will be taking a job at a public hospital with a pension, 403b, 457 and HSA. My question is this: how should my pension influence my asset allocation?
I am tempted to weight it similar to bonds. Also, I do not have access to decent bond funds. My plan, as it currently stands is to save approximately 20% of pretax income between my savings and employer match (including an HSA, but not counting the pension) and put 100% into equities with some spread between full index, small cap and international as there are decent choices for these classes, then maybe HSA into a REIT or just more index.
I will be fully vested in the pension after 10 years. My thought is that bonds should not play a big role in the early part of my career as I have time to recoup losses from corrections/bear markets. If I leave before 10 years, which I don’t anticipate, I can swing some money from equities into bonds. If I stay past vesting, I can continue to put 100% of my contributions + match into equities and have the pension count as my bond portion.
Other potentially pertinent info: student loans paid off, small emergency fund (a few thousand, will probably be depleted for moving/start up in new city), about 30k in retirement savings thusfar (vanguard target), nonworking spouse who stays at home with our infant. We will be moving. Don’t own a home. No car payment. Have considered buying a “starter house” for 200-300k with a doctor loan vs. renting for 1-3 years to save up for a home down payment.
Thanks!!
I’m am a graduating fellow who will be taking a job at a public hospital with a pension, 403b, 457 and HSA. My question is this: how should my pension influence my asset allocation?
I am tempted to weight it similar to bonds. Also, I do not have access to decent bond funds. My plan, as it currently stands is to save approximately 20% of pretax income between my savings and employer match (including an HSA, but not counting the pension) and put 100% into equities with some spread between full index, small cap and international as there are decent choices for these classes, then maybe HSA into a REIT or just more index.
I will be fully vested in the pension after 10 years. My thought is that bonds should not play a big role in the early part of my career as I have time to recoup losses from corrections/bear markets. If I leave before 10 years, which I don’t anticipate, I can swing some money from equities into bonds. If I stay past vesting, I can continue to put 100% of my contributions + match into equities and have the pension count as my bond portion.
Other potentially pertinent info: student loans paid off, small emergency fund (a few thousand, will probably be depleted for moving/start up in new city), about 30k in retirement savings thusfar (vanguard target), nonworking spouse who stays at home with our infant. We will be moving. Don’t own a home. No car payment. Have considered buying a “starter house” for 200-300k with a doctor loan vs. renting for 1-3 years to save up for a home down payment.
Thanks!!
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