The Third Approach to Reduce Volatility

Ask yourself, what are you comfortable with? How low does your spending need to go for you to avoid worrying about whether or not you will outlive your assets? That's option one. Option two, spending flexibly is another option, and that's something that people might be naturally doing right now. The third approach is to reduce volitility. As doctor fow says, bonds can't support much spending power. Or you can use bonds for short term expenses and stocks for long term expenses. According to the bucket strategy, you could also consider a simple income annuity. To learn more about annuities, check out episode 137.