This document discusses strategies for managing investment risk during retirement. It recommends reducing equity exposure and increasing bonds during the critical years just before and after retirement to minimize the effects of poor market returns. However, once the early retirement period is past, it suggests increasing equity exposure again through a "rising equity glidepath" to benefit from the higher expected returns of stocks. Implementing this can be done easily using a bucket approach or target date funds. The document provides sources on further discussing rising equity glidepaths and safe withdrawal rates in retirement. It was presented by Laura Ricci to the Milwaukee Bogleheads investment group.

1. Should Stocks Rise as I age?
Rising Equity Glidepath in Retirement
• Laura Ricci
• Milwaukee Bogleheads I
• January 2, 2018
Graduate Level Expertise Age: Retired

2. Poor Sequence of Returns
• Just before and just after retirement is the riskiest period
for DIY investors.
• If the market takes a downturn during this critical
decade, outcomes can be seriously threatened.

3. Poor Sequence of Returns
• Lots of attention is paid to managing the years just
before and after retirement.
• Most often, reducing risk by easing the asset allocation
from equities to bonds is highly recommended.

4. Poor Sequence of Returns
• Lots of attention is paid to managing the years just
before and after retirement.
• Most often, reducing risk by easing the asset allocation
from equities to bonds is highly recommended.
• So what do we do after this period?

5. Rising Equity Glidepath
• Once early retirement is over, increase stocks again.

6. Rising Equity Glidepath

8. Target Date Funds

9. Rising Equity Glidepath
• Easier than Prime Harvesting to implement
• The Bucket Approach works well to accomplish this.

10. Minimize Effects of RDCA
3. To rebalance from equities to fixed: top off money
market, then short term bonds, then other bonds.
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11. How I’m implementing
• Run Calculations based on current market to determine
the actual withdrawal every 6 months (I-ORP, Fidelity
RIP, Prime Harvesting).
• Any remainder will be reinvested in the CD ladder.
• No withdrawal from equities, just CDs and after 3 years,
bonds.
• When the market is stable or rising, rebalance every 3 -
4 years. Begin raising asset allocation age 75, though it
may float to a natural rising equity glidepath.

12. Sources Used
• https://www.kitces.com/blog/should-equity-exposure-
decrease-in-retirement-or-is-a-rising-equity-glidepath-
actually-better/
• https://earlyretirementnow.com/2017/09/13/the-ultimate-
guide-to-safe-withdrawal-rates-part-19-equity-glidepaths/
• https://earlyretirementnow.com/2017/09/20/the-ultimate-
guide-to-safe-withdrawal-rates-part-20-more-thoughts-
on-equity-glidepaths/

13. Milwaukee Bogleheads®
• A DIY investment group, followers of John Bogle's Index
investing strategies, the Milwaukee local chapter of
Bogleheads.
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14. Disclaimer
• All examples are for illustration purposes only and are
not investment recommendations.
• The views expressed in the presentation, are those of
the presenter, commenters, guests and participants and
may not reflect the views of the Bogleheads
organization.
• Use your discretion in using examples presented here
for your own investment purposes.
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