We spend a lot of time on this site thinking about saving: putting a lot of money away, making sure we put it away in the right places, figuring out how much risk we’re willing to take with that savings, and more.
But when the retirement rubber meets the road, there are a lot of mechanics to figuring out how you’ll actually draw off of those savings that have hopefully compounded over time.
Developing a strategy for managing your transition from accumulation to drawdown is critical. It’s a huge shift in your investment strategy, and it’s not something you should approach without a plan.
We have increased our stock exposure from 48% to 57%, which is in line with what we were targeting. We took advantage of the COVID downturn to buy during the bear market, with our biggest move into equities coming on March 23, 2020.
Like many Baby Boomers, we have too much money in our tax-advantaged accounts, a legacy of the Roth not being an option in our 401(k) during many of our working years.