Ramin Nakisa

So your risk capacity is very high because if the portfolio went to zero tomorrow, it wouldn't affect your ability to live, your quality of life, where you shop, etc.

But it would affect your ability to sleep, perhaps, because you'd be really upset.

So I think the emotional side of it shouldn't be underestimated.

So I think you could be 20 and have 50% equity, 40% equity.

It really depends on the person.

Really, it's about finding a portfolio you can live with.

And for different people, I think, they have different levels of risk that they can stomach.

I think so, yeah, knowing what I know.

And it depends on rates as well.

Like in the 19th century, rates were really good.

So if you'd have bought fixed income in the 1800s, actually it wouldn't have been a bad allocation at all.

So it just depends on markets and where we are with yields.

It depends on lots of things.

But I think risk appetite is a really important one.

And I think some people do some crazy stuff.

Like, for example, there's the idea of the reverse glide path.

Have you come across this?

Where instead of ramping down the equity as you get older, you start off with very low risk.

So you start off with 20% just as you retire to avoid the sequencing risk.

And then you re-risk.