Having A Pension Allows Greater Flexibility With Dividend Growth Stock Selection

Background With characteristic persuasiveness, well known dividend growth investor David Van Knapp has argued that to get a true picture of one's asset allocation, the capital equivalent of one's income from Social Security and other pensions should be included when determining how much of one's portfolio is invested in fixed income investments. In many cases, the resulting conclusion for the dividend growth investor will be that most of one's non-pension assets can appropriately be invested in dividend growth stocks without the need to put anything in traditional fixed income investments at all. His argument made me wonder about a related question: in addition to its effect on asset allocation decisions, might having substantial pension income make it appropriate to take greater risks with respect to the selection of individual dividend growth stocks? What I Mean by Taking Additional Risks Let me clear about this up front: when I talk... Read more