Index Investing: From Theory to Practice · Dr MAI Huu Minh, TRAN Phan Bao Ngoc & HUYNH Nguyen Quoc BuuChapter 22 of 37 · Module 6: Invest
CHAPTER 22
Building a Lifetime Index Portfolio
Goals, allocation, rebalancing and the long road to retirement
Opening question
“I understand index funds now. But which ones, in what proportions — and what do I do when I am 35, 55 or 70?”
In this chapter
- Goals, horizon, risk capacity and risk tolerance
- Foundations first: emergency fund, insurance and expensive debt
- Core and satellite: where index funds fit
- Asset allocation with three to five funds, and sample allocations by life stage
- Home bias and global diversification for Vietnamese investors
- Rebalancing rules, with a worked example
- Lump sum or regular investing?
- Glide paths, target-date funds, retirement withdrawals and sequence-of-returns risk
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This chapter is in the full book
Chapter 1 is free to read online. The full text of chapter 22 — with its tables, figures, worked examples and practice lab — is available in the complete edition of Index Investing: From Theory to Practice (Volume 1, NXW Investment Library).
Read Chapter 1 freeGet the full book — contact@nxw.vnSections of this chapter
22.1 Start with the goal, not the fund
22.2 Risk capacity and risk tolerance
22.3 Foundations first: cash, insurance and debt
22.4 Core and satellite
22.5 Asset allocation with three to five funds
22.6 Home bias and global diversification
22.7 Rebalancing: keeping the plan on course
22.8 Lump sum or regular investing?
22.9 Glide paths and target-date funds
22.10 Retirement withdrawals and sequence risk