Strategic Asset Allocation for a High-Net-Worth Client Approaching Retirement

You are an investment advisor tasked with developing a strategic asset allocation plan for a high-net-worth client, Susan, who is 55 years old. Susan has a moderate risk tolerance and significant assets totaling $3 million. She is seeking to retire in 10 years and wants to ensure that her portfolio can sustain her lifestyle in retirement while also keeping pace with inflation.

Susan has expressed interest in diversifying her investments, but she is also concerned about market volatility. She currently holds a portfolio composed of 60% equities, 30% fixed income, and 10% alternative investments. Your objective is to analyze her current asset allocation, recommend adjustments, and explain the rationale behind your recommended asset allocation in light of her financial goals and risk tolerance.