Need some help with balancing my portfolio

Hello! It’s great to hear that you’re planning ahead for your retirement. Transitioning from an aggressive to a more conservative portfolio as you approach retirement is a common strategy, often referred to as «glide path» strategy. This involves gradually shifting your asset allocation to reduce risk as you get closer to needing to access your funds.

Here are some steps to consider for transitioning your portfolio:

1. Assess Your Current Portfolio: Review your current investments to understand how much is allocated to higher-risk assets like stocks and how much is in lower-risk assets like bonds or cash.

2. Define Your Retirement Goals: Consider when you plan to retire, your lifestyle needs, and any other income sources you might have in retirement (like a pension or part-time work). This will help determine how much risk you need to take to achieve your goals.

3. Adjust Your Asset Allocation: Gradually start shifting your investment from stocks towards more bonds and fixed-income securities. For example, if your current allocation is 80% stocks and 20% bonds, you might consider moving to a ⁷⁰⁄₃₀ ratio, and then slowly adjust as you get closer to retirement.

4. Consider Diversification: As you adjust your allocation, ensure your investments are diversified across different asset classes and sectors to mitigate risk.

5. Regular Reviews and Adjustments: Your needs and the market conditions will change over time. Regularly review your portfolio to ensure it remains aligned with your retirement goals.

6. Use Tools and Resources: Utilize tools and resources that can help you visualize different scenarios and outcomes. For instance, creating a portfolio drawdown scenario, like the one you might find in resources from Pearler, can help you understand how your portfolio might perform under various condit

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