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"For example, if you would receive enough of an income stream from SS and Pension alone to cover all of your expenses/needs, you may be able to be more aggressive with your asset allocation."

The goal I was thinking of when I typed the comment "may be able to be more aggressive with your asset allocation" if SS and pension alone provided a large portion of one's income stream was setting an allocation that both provided additional needs for us as well as was able to grow enough to leave something to our heirs.


The reason for having bonds in your asset allocation is to reduce volatility. The problem with volatility in your withdrawal phase is that in down times your portfolio balance gets hit with both percentage reduction due to bear market and absolute reduction due to withdrawal of fixed dollar amount. The withdrawal forces you to convert unrealized losses to realized losses.

Bonds reduce volatility but also reduce return.

If you have enough income, then the volatility does no harm (because you don't have to realize the losses by withdrawing money), therefore there is no particular reason or benefit to reduce your volatility, therefore no particular reason to have a high bond allocation.

For all intents and purposes, you are still in accumulation phase, and not in decumulation.
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