The Retirement Shift: Why Your Strategy Must Change as You Approach Retirement

As retirement draws closer, many people experience a shift—not just emotionally or mentally—but financially as well. This shift requires more than simply saving and hoping your portfolio grows. It’s what we call “The Retirement Shift”—a transition from accumulation to distribution, and it comes with its own set of challenges and strategic decisions.

We recently had an insightful conversation with financial expert Guy Riccardi to unpack this retirement shift, and why managing it the right way can make or break your retirement years.

From Accumulation to Distribution: What Changes?

When you’re working, your primary financial focus is accumulation—saving money, investing in mutual funds, 401(k)s, index funds, and letting your portfolio grow. Volatility doesn’t hurt as much here. In fact, dips in the market can be seen as an opportunity: you’re buying more shares at lower prices.

But everything changes when you retire.

“You flip from accumulation to distribution mode—and now you’re relying on your assets,” Guy explains. “Market volatility is no longer a background concern; it’s a direct threat to your retirement income.”

The Danger of Volatility in Retirement

In retirement, you’re no longer adding money to your investments. Instead, you’re withdrawing from them, often during unpredictable market cycles. If not managed properly, this could mean pulling money out at market lows—forcing you to sell assets at a loss just to meet your income needs.

That’s where volatility control and risk management become critical.

“In a poor market, you want to sell what’s performing well—not take losses on assets that are temporarily down,” Guy says. “That takes strategic active management, not just a ‘set it and forget it’ approach.”

The Importance of Risk Management

Even a few years before you officially retire, your mindset and strategy should start to shift. At this stage, many begin asking important questions:

• Am I on track to retire comfortably?
• Do I still need investment growth, but with less risk?
• Is my current strategy sustainable for generating income?

Relying solely on pooled funds like a 401(k) or traditional mutual funds may no longer be enough. These accounts don’t come with personalized risk management. That’s why working with a dedicated advisor can make a major difference.

“You don’t need to give up all the upside,” says our host. “But you do need to prepare for the downside—and having someone who understands your timeline and income needs is critical.”

What About Safe Withdrawal Rates?

A common guideline is the 4% rule—withdraw 4% of your portfolio per year to avoid running out of money. While this can work as a general benchmark, it’s not one-size-fits-all.

“Morningstar still references around 4%, though it’s gone as low as under 3%,” Guy says. “But with the right strategy, we’ve seen clients safely generate 6% income without depleting their portfolio.”

Real-Life Example: Income + Growth

One recent case highlights the power of a managed approach. A couple who retired a few years ago—during a volatile market—has been withdrawing slightly over 6% annually. Not only has their income need been met, but their account continues to grow.

“He told me, ‘I’m taking money out and my account is still growing. I couldn’t be happier,'” says our host.

That’s the power of strategic income planning—knowing what to sell, when to sell, and where to draw income from to preserve long-term growth.

Final Thoughts: Don’t Go It Alone

Retirement is complex. The shift from building wealth to living off that wealth requires more than hope—it requires a strategy, proper risk management, and often, experienced guidance.

If you’re 3–5 years away from retirement or already in it, now is the time to reassess:

• Are you positioned for income and growth?
• Do you have a plan to weather market downturns?
• Are your assets being actively managed with your retirement timeline in mind?

If not, let’s talk. Helping you retire with confidence and clarity is what we do best.

📞 Ready to Learn More?

Schedule a free retirement readiness review today and discover how we can help you transition into retirement the right way—with peace of mind, steady income, and continued portfolio growth.