If you have been following this book in a step-by-step fashion, you have already done a lot of the work. Now that you have figured out how much you need, want, and can afford to spend on a yearly basis—following the 4 Percent Rule featured in the previous chapter, it’s time to manage and withdraw that money.
When you are two years from your planned retirement age, I believe you should sort your money into three pots—which you will see displayed throughout this chapter:
• Pot 1: Total Investments Pot
• Pot 2: Holding Pot
• Pot 3: Spending Pot
The first pot, the Total Investments Pot, is where the bulk of your money will be, and this is where you want to try to continue to achieve moderate growth. The second pot, the Holding ...