Phases of Savings

Phases respond to how much time you have before you need the money. I break it down as follows:

1. Aggressive Phase (Young) - 100% stocks up until you are 50 as that means you still have 10-15 years from a typical retirement age of 60-65
2. Moderate Phase (Middle-aged and looking to the future) - 65% stocks / 35% bonds from age 50-59 as you're approaching retirement and have less time to absorb a market correction
3. Preserving Retirement Phase (Shadow of retirement) - 50% / 50% stocks and bonds from age 60-retirement as you coast into the point you'll use the money.
4. Legacy phase - 35% stocks / 65% bonds from age 70-end. This focuses most on preserving money.

At the point that you stop working, you enter a withdrawal phase. A general approach is that the withdrawal phase operates the same as the preserving retirement phase (50/50) from the point that you stop accumulating wealth and start consuming your wealth. This governs investments until you reach the legacy phase at 70. You rebalance your assets and continue to withdraw from your savings. * Withdrawal phase - if you retire early or in your 60s and stop contributing and start withdrawing, this is how the money is preserved until you reach legacy phase.