Transition Period Strategy Part 1 – Asset Positioning: EDU #2516

April 16, 2025

Chris’s Summary:
Jim and I are joined by Jake and Jacob to discuss listener emails related to asset positioning for retirement and the transition period leading up to it. We break down how we think about asset allocation across account types, what a liquidity account is and why we use it, and how we handle year-end tax planning. It’s all part of how and why our Secure Retirement Income Process™ focuses on spending needs, not just portfolio performance.

Jim’s “Pithy” Summary:
Chris and I are joined this week by Jake and Jacob for the first in what will likely be a multi-part series—because if you’ve listened to us long enough, you know we don’t exactly breeze through these things. This all started with two listener emails that were clearly related: one asked how to position assets across different types of accounts—Roth, IRA, brokerage, and so on—while the other came from someone in what we call the “transition period,” not quite accumulating anymore but not yet distributing either. We figured it was a perfect opportunity to dig in.

So, we walk through our approach to asset management, why we don’t believe in being dogmatic with account assignments, and how we use the Fun Number™ and Minimum Dignity Floor™ as anchors when planning for retirement spending—and why trying to map out every distribution years in advance is a fool’s errand. Instead, we focus on creating a flexible structure that can adapt as life throws curveballs. I share why I’m a fan of the liquidity account concept, Jake dives into how we handle tactical tax planning each fall, and Jacob brings his Jello-themed wisdom to the world of asset positioning.

Chris keeps us on track (mostly), but yes, there’s a brief derailment involving a questionable turn of phrase on my part—and now Jake and Jacob have recorded evidence of me offering them raises.

Podcast: Play in new window | Download (Duration: 1:24:55 — 38.9MB)

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