Glide To Your Retreat

The most critical planning for your life after retirement hinges on asset allocation. It calls for intuitive allocation and time-based rebalancing of your assets like equity, debt, gold, cash, crypto and real estate. Let’s focus on two asset allocation regimes – equity and debt. Around 90 per cent of the variability in portfolio returns could be explained through asset allocation, according to Determinants of Portfolio Performance, a landmark 1986 study by Brinson, Hood, and Beebower in the Financial Analyst Journal. We can divide the process of asset allocation for equity and debt in three stages. In stage one, you focus on maximum savings and investment, when your account balances are low and your goal is long way off. You have time to recover from market downturns and, so, your risk appetite is high. Invest a large chunk of your assets in equity funds in this stage. A...