1. Asset allocation holds the answer for developing a strategy for attaining the core objective of inflation-adjusted income during retirement.
2. An asset allocation, where a portion is in growth assets and another portion is in income assets, is an ideal solution for retirees.
3. The investor should see his retirement expenses as withdrawal from a corpus that is allowed to grow, rather than preferring a regular income with preservation of the principal amount.
4. The crux of this strategy is the compounding of the invested amount to fight inflation, and the utilization of the corpus over time to meet income needs.
5. This strategic approach means the investor is not focussed on the income his assets generate; instead, he is concentrating on how it is growing year after year.
6. It is not tough to make the investment choices for apportioning his portfolio, within his own risk profile.
7. Thereafter, his only task would be to focus on these proportions and restore them once a year without caring for the markets and views.
2. An asset allocation, where a portion is in growth assets and another portion is in income assets, is an ideal solution for retirees.
3. The investor should see his retirement expenses as withdrawal from a corpus that is allowed to grow, rather than preferring a regular income with preservation of the principal amount.
4. The crux of this strategy is the compounding of the invested amount to fight inflation, and the utilization of the corpus over time to meet income needs.
5. This strategic approach means the investor is not focussed on the income his assets generate; instead, he is concentrating on how it is growing year after year.
6. It is not tough to make the investment choices for apportioning his portfolio, within his own risk profile.
7. Thereafter, his only task would be to focus on these proportions and restore them once a year without caring for the markets and views.