Tactical Asset Allocation for a Retirement Portfolio

Jessica is a financial advisor tasked with managing a moderate-risk portfolio for a client nearing retirement. The client currently has a traditional 70% equity and 30% fixed-income allocation. Given the recent changes in the economic landscape, including rising interest rates and market volatility, Jessica is considering implementing a Tactical Asset Allocation (TAA) strategy to adjust the asset mix temporarily.

In your response, discuss the concept of Tactical Asset Allocation and its relevance in the current economic context. Describe factors that Jessica should consider before adjusting the allocations and the potential benefits and risks associated with TAA. Additionally, provide a brief outline of the steps Jessica should take to effectively implement the TAA strategy.