Asset Allocation for Retirement

Background

Asset allocation is how you divide your investments across asset classes like equity, debt and gold. It is a primary driver of both risk and return in a retirement plan.

Explanation

Younger investors typically hold more equity for growth, while those closer to retirement increase debt for stability. The right mix depends on your risk tolerance, years to retirement, and other guaranteed income sources. Periodic rebalancing keeps your portfolio close to target.

Example

A 35-year-old may choose 70% equity, 25% debt and 5% gold, while at 60 they may glide to 40% equity, 55% debt and 5% gold. A retirement calculator can model how these choices affect corpus size and sustainability.

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