I have an old 401(a) from residency that has an interest rate of 6.5%/yr and is invested by a state that has underfunded pension obligations. I can log into the plan website and see the balance which I can rollover into an Ira at any time. The plan balance is about 10% of assets right now. At 62, I will be able to convert this balance into an annuity or take the lump sum. Do I include this balance as part of my bond allocation? A future cash stream which is entirely unknown given the unfunded pension obligations? I do not want to rollover this balance because there is a chance I may return to the institution as an attending one day and am grandfathered into the old rules which are generous.
Also, I have a 1.5 years expense cash balance with a good chunk earning money market and high yield saving rates with about 20k in prepaid debit cards earning 5%. This amounts to 10% of assets right now.
The rest is traditional stock and bonds.
Also, I have a 1.5 years expense cash balance with a good chunk earning money market and high yield saving rates with about 20k in prepaid debit cards earning 5%. This amounts to 10% of assets right now.
The rest is traditional stock and bonds.
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