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What would be the right asset allocation for a retiree?

Dhirendra Kumar advises on how one should decide their asset allocation

I am 65 years old and have some investment in mutual funds. What would be the right asset allocation for me?
- Abbas Ahmed

Suppose it is a long-term investment, and he is not expecting any returns or depending on any returns from these investments. In that case, ideally, it should be a 50:50 allocation to equity and debt and should be rebalanced every six months if the asset allocation goes out of whack. If he requires income from his investment and depends on that, it requires careful planning. In that case, the money he needs in the next three years should be kept in a conservative fixed-income fund. The remaining money can be allocated 50:50 to equity and debt and should be rebalanced periodically. The three-year income should be parked in a fixed-income fund while there should be an SWP set for income from the same. The remaining can be allocated 50:50 to equity and debt each. That would ensure his money grows, and at the same time, he would not face any anxiety for his income requirements.

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