TITLE

Rethinking the Family's Asset Allocation

AUTHOR(S)
Reichenstein, William
PUB. DATE
May 2001
SOURCE
Journal of Financial Planning;May2001, Vol. 14 Issue 5, p102
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
This article challenges two aspects of the traditional approach to calculating a family's asset allocation. First, it emphasizes the need to distinguish between before-tax and after-tax funds when calculating the asset allocation. Second, it argues that a family's portfolio should be broadened to include, at a minimum, (1) the value of retirement income streams, such as Social Security and company pensions and (2) the mortgage as a short position in bonds. As we shall see, a family's asset allocation varies dramatically depending upon whether we adjust account values for taxes and what we include in the family portfolio.
ACCESSION #
4460513

 

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