Your Salary Is a Bond
A paycheck is a coupon. Discount it at the treasury rate and your job becomes a bond holding with a principal value — usually the largest position you own. Here's what it's worth, and how much stock you'd need to hold beside it to actually be at a 60/40 or 70/30.
Paid
$100,000 a year, paid yearly, discounted at 4% over 30 years.
Annual coupon $100,000 1× per year
Perpetual equivalent $2,500,000 in treasuries, forever
What that does to your allocation
Count the salary bond as your fixed-income sleeve and the stock side has to grow to keep the ratio. Most people are far more bond-heavy than they think.
60/40 Total portfolio $4,323,008
Stocks needed · 60% $2,593,805
Salary bond · 40% $1,729,203
70/30 Total portfolio $5,764,011
Stocks needed · 70% $4,034,808
Salary bond · 30% $1,729,203
A salary isn't a treasury: it can be laid off, and it's usually correlated with the very market you're invested in. Read the number as an order of magnitude, not a quote.