Does the thumb-rule of (100 'minus' my age) provide the right debt-equity allocation in a portfolio?

Answer transcript: This is too simplistic. The general idea was that, as you get older you will have to depend on your investments for your living expenses and hence you should reduce your equity exposure. But today things have changed dramatically. Not everyone has the same level of expenses. You should only have fixed income to the extent that it can support your income needs in your retirement and the rest of your money should be in equity to a reasonable extent so that the worth of your capital is maintained.

This article was originally published on May 17, 2017.