Topic: Asset Allocation
6 posts tagged “Asset Allocation”.
The Glidepath
The conventional rule dials down the share of equities as you age, trading growth for stability. It is sensible, but not the only view — some researchers argue for letting equities rise again later in retirement. Here is the case for each.
CPF as Your Bond Allocation
When planning an asset mix, many people overlook their largest safe asset. CPF's near-guaranteed interest makes it behave like a very high-quality bond — which means the rest of your portfolio can often afford to hold more growth than you first think.
The Bond Tent
A "bond tent" lifts your safer assets in the years right around retirement — exactly when sequence-of-returns risk peaks — then lets equities drift back up once the danger has passed. A simple shape that targets the riskiest window.
Asset Allocation Is The Real Driver
Before choosing an investment mix, it helps to know the building blocks — the asset classes, and what each has tended to return. Do that, and a landmark finding lands with force: how you split your money across those classes drives most of your long-run result.
Think Like an Endowment
A retirement pot that must last thirty years behaves less like a savings account and more like a university endowment. David Swensen broke the old 60/40 "prudent" rule — and showed why a long horizon can carry a larger equity tilt.
Total Return, Not Just Yield
Many retirees want a pot that "pays an income". Chasing yield quietly concentrates risk. The endowment habit is to spend from total return — income plus capital growth — and let a spending rule, not the dividend cheque, decide what you draw.