After Retirement, Just Focus on Your Asset Allocation
Every retired investor only needs to focus on managing their own asset allocation well.
Every retired investor only needs to focus on managing their own asset allocation well.
Every retiree has different total assets, annual expenses, risk tolerance, and retirement goals, so the suitable asset allocation will also differ. Do not care too much about other people's asset allocations, and do not compare your own situation with others. Just focus on the allocation that is most suitable for you.
The most important core of retirement asset allocation is not to pursue the highest return, but first to establish stable and sufficient cash flow, so that retirement life can be secure, long-lasting, and unaffected by market volatility.
Part One: Establish Living Cash Flow
Invest 10 years of annual expenses in QQQI through sub-brokerage.
QQQI can provide monthly distributions close to about 1%, generating roughly 12% cash flow per year.
For example:
If you need 1 million yuan per year for living expenses:
100 ÷ 12% = 8.3333 million yuan
In other words, investing about 8.34 million yuan in QQQI can provide about 1 million yuan of annual cash flow.
If using 10 years of annual expenses as the allocation:
1 million × 10 = 10 million yuan
10 million × 12% = 1.2 million yuan of annual cash flow, which is 200,000 yuan more than the required 1 million yuan per year, or about a 20% safety margin.
Part Two: Establish Long-Term Growth Assets
Prepare another 5 years of annual expenses as growth-oriented investment.
1 million × 5 = 5 million yuan
Suggested allocation is as follows:
- 70% (3.5 million yuan) invested in QQQ (00662 can be used in Taiwan)
- 30% (1.5 million yuan) invested in BOXX (00865B can be used in Taiwan)
The goal of this part is to pursue long-term asset growth.
What you truly need to do is focus on this kind of asset allocation. There is no need to guess daily market movements, nor to adjust the portfolio frequently. Let time and the market's long-term growth accumulate wealth for you.
All information we provide is only a sharing of personal experience. It is not advice from a professional investment advisor, Certified Financial Advisor/Planner, or professional tax practitioner. Investment decisions and tax issues should be based on personal research or the opinions of professionals, and should not rely solely on this content.
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