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"Suppose, for example, that your Social Security income is $17,000 a year – a typical figure for a couple – and your 401(k) rollover account and other financial assets are $400,000. Then you start your asset allocation with a conservative value for your Social Security at 14 times the income, or $238,000. Added to your $400,000 in savings, this means you have the equivalent of $638,000. In effect, 38 percent of it is already allocated to a bond equivalent."

I've read many articles on asset allocation but I've never seen one before that considered the asset value of SS in the mix. Is anyone actually doing this? If I'm evaluating my portfolio for it's ability to supplement my pension/social security income, do I really want to include the asset value of pension/social security in the calculation? Seems like that would automatically push me into excessive equity exposure in my portfolio. Or am I thinking wrong on this?

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