The Bogleheads' Guide to Retirement Planning

Many investment companies now offer life cycle funds, also called target-date funds. They are designed to adjust their allocation automatically from an aggressive allocation to a less aggressive

Even if you do decide to DCA, you should invest the entire amount that is going into bonds as soon as you start

n income-oriented portfolio focuses on incoming dividends and interest and is generally viewed as a lower-risk retirement portfolio.

You may decide to dollar-cost average a newly acquired large sum of money, such as an inheritance. If you have a large sum of money to invest, you may want to move the money that is going into equities in equal amounts over a period of several months.

Philip L. Cooley, Carl M. Hubbard, and Daniel T. Walz are professors of finance in the Department of Business Administration, Trinity University, San Antonio, Texas. In the February 1998 AAII Journal, they published “Retirement Savings: Choosing a Withdrawal Rate That Is Sustainable.” The article highlighted their findings in a comprehensive study on sustainable withdrawal rates in retirement.

An income-oriented portfolio focuses on incoming dividends and interest and is generally viewed as a lower-risk retirement portfolio.

David and Donna Deferral

you are no longer making contributions to your investment accounts and are in retirement and taking withdrawals, you can use this method to rebalance by just doing it in reverse. Each time you need to withdraw money from your investments, simply look at your asset percentages and take the money out of the one that is overweight. This will generally mean that you are selling the asset class that has appreciated the most recently, so you are selling high, which is a good thing.

Each time you have new money to invest, simply look at your asset percentages and put the money in the one that needs a boost to bring it back to its normal weighting

Rebalancing by the Calendar