What is a Glide Path?
Background
A glide path is a planned schedule for shifting your portfolio from higher-risk assets like equity to lower-risk assets like debt as you age or move closer to retirement.
Explanation
Instead of making a single big switch, you change allocation in small steps—such as reducing equity by 2–3 percentage points each year after 45. This helps protect your corpus from a late bear market while still letting you benefit from growth earlier.
Example
From age 45 to 60 you move from 70% equity to 40% equity by trimming 2% each year and redirecting new contributions to debt. You enter retirement with a smoother risk profile and less sequence-of-returns risk.
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