Pension Bond-Equivalent Calculator
Discover your true asset allocation — including the fixed income your pension already provides.
Your Pension & Portfolio
Use your projected annual pension at retirement. Find this via your system's official estimator.
Your pension provides a defined income stream for life — subject to the funding status and legal protections of your state retirement system. In financial terms, it behaves like a very large bond — stable, predictable, and inflation-limited. Before looking at your 403(b), we need to account for it.
Combined total of all investment accounts: 403(b), 457(b), IRA, Roth, brokerage.
60% stocks / 40% bonds
Sliders are linked — they always sum to 100%.
Advanced settings — adjust assumptions
Used to estimate the lump-sum equivalent of your pension stream. 5% is a commonly used planning rate.
Affects the present value calculation. Longer retirements increase the bond-equivalent value.
If your pension has a COLA, enter it here. This reduces the effective discount rate applied.
Discount rate minus COLA rate. Minimum 1%.
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Fixed Income (Pension-Aware)
—% Equity
The Michael Moment
True vs. Stated Allocation
Equity
Portfolio Bonds
Pension Bond-Equivalent
Allocation Breakdown
| Category | Stated Allocation | True (Pension-Aware) |
|---|
▶ Assumptions & Sources
| Parameter | Value Used | Notes |
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Bond-equivalent methodology follows standard present value of annuity principles used in financial planning. Discount rate default of 5% per common RIA planning practice. This tool is for educational purposes only and does not constitute investment advice.
Your pension changes everything about how your portfolio should be built. Visit teacherspath.net to see what pension-aware planning looks like for your situation.
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