@quachloc1985:

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Monday 10 August 2026 09:08:00 GMT
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You Already Own A Bond
 Your CPP and OAS costs about $494,000 to buy. Price the floor before you pick a mix. Somebody asks how much they should hold in bonds. Usually the wrong first question, because a lot of Canadians already own something that pays inflation-indexed income for life. It just never shows up on a statement. Maximum CPP at 65 this year is $1,507.65 a month. Full OAS is $751.97. Call it $2,259.62, indexed to actual inflation, and neither one can fall if prices fall. A Canadian insurer this month, single life, registered, escalating at 2 percent, pays about $457.21 a month per $100,000. So that floor is worth roughly $494,000 of purchased annuity. Two people in a house, close to $1 million. Blanchett and Finke 	modelled what that does to the allocation question. As guaranteed income goes from 5 percent of your wealth to 75 percent, the optimal equity allocation goes from 30 percent to 95. Two people, identical portfolios, completely different right answers, and the difference isn't nerve. Two catches. It works because CPP and OAS are tied to real inflation, and most Canadian private sector pensions aren't fully indexed. Read your own plan's clause. And OAS gets clawed back once your income gets up there, so part of that floor might not be yours. Add up CPP, OAS and any pension. Subtract what you actually spend. The gap is the only part a portfolio has to cover. That's the number the allocation question was always about, and most people have never worked it out. Full guide in the community.
You Already Own A Bond
 Your CPP and OAS costs about $494,000 to buy. Price the floor before you pick a mix. Somebody asks how much they should hold in bonds. Usually the wrong first question, because a lot of Canadians already own something that pays inflation-indexed income for life. It just never shows up on a statement. Maximum CPP at 65 this year is $1,507.65 a month. Full OAS is $751.97. Call it $2,259.62, indexed to actual inflation, and neither one can fall if prices fall. A Canadian insurer this month, single life, registered, escalating at 2 percent, pays about $457.21 a month per $100,000. So that floor is worth roughly $494,000 of purchased annuity. Two people in a house, close to $1 million. Blanchett and Finke modelled what that does to the allocation question. As guaranteed income goes from 5 percent of your wealth to 75 percent, the optimal equity allocation goes from 30 percent to 95. Two people, identical portfolios, completely different right answers, and the difference isn't nerve. Two catches. It works because CPP and OAS are tied to real inflation, and most Canadian private sector pensions aren't fully indexed. Read your own plan's clause. And OAS gets clawed back once your income gets up there, so part of that floor might not be yours. Add up CPP, OAS and any pension. Subtract what you actually spend. The gap is the only part a portfolio has to cover. That's the number the allocation question was always about, and most people have never worked it out. Full guide in the community.

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