Asset allocation - should equity risk be taken inside our outside a pension/ARF?

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JimmyB99

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A friend of mine is approaching retirement with something like 600k in cash and 400k in a pension (soon to be ARF).

For the purpose of this question, let's say he wants to put 50% of his total assets into equities and the balance in less volatile places. Is he best advised to take all the equity risk in the pension or not?
 
JimmyB99 said:
A friend of mine is approaching retirement with something like 600k in cash and 400k in a pension (soon to be ARF).

For the purpose of this question, let's say he wants to put 50% of his total assets into equities and the balance in less volatile places. Is he best advised to take all the equity risk in the pension or not?
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I think it is mainly a tax call and thus better in the pension as taxation is more symmetrical. Meaning that if assets fall in value you immediately get tax deduction. Outside you get capital losses which are not immediately relievable. But I may be missing something.
 
Thanks Duke - appreciated - that was my hunch but nice to get your opinion.

I wonder how the adviser community approaches this question and whether any study has been done on this?
 
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