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Social security, for instance, is not taxed at all unless you are also working.

This is just plain not true. 85% of SS payments are taxable.

If SS is your primary income source you may not end up paying any tax, but that is determined by your Form 1040.

In the Four Pillars on Investing, William Bernstein recommends capitallizing any SS payments of other pensions. SS would be capitalized at a rate of about 6%. (Divide your expected annual SS payments by 0.06) This sume is trreated as a bond in our asset allocation.

My expectation is that you will find you should keep most of your funds in equities when you do this calculation.

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