What factors should you consider in reviewing your assets? What determines the suitability of those assets for retirement? Solution While reviewing assets like cash savings, investments in equity and mutual funds, properties etc. the following factors should be considered - (i) what is the investment goal? As per financial prudence, the farther a person is from his or her investment goal, the higher is the quantum of risk that should be taken. (ii) is your assets as per your risk tolerence? If you have a lower risk tolerence, your assets should comprise mostly of bank savings, fixed deposits and immovable properties. If your risk tolerence is high, your assets should comprise mostly of equity investments with lower exposure to fixed deposits and other less risky assets. In order to determine the suitability of those assets for retirement, the assets should have the following criteria: (a) the asset should be capable of producing a regular and recurring income. For instance one of your assets is a residential appartment, that you are planning to give on rent. This will provide you with regular and recurring income in the form of rental income. (b) the assets should be liquid. Assets during retirement should be such that can be converted into cash easily and assets with greater lock in period, that will be monitized after a long time, is not suitable at the time of retirement..