How does a rising-equity glidepath help protect against a bad market early in retirement?
A rising-equity glidepath means you start early retirement with a lower stock allocation, perhaps 55-60%, and gradually increase it back toward a higher equity weight over the first decade or two. Research by Michael Kitces and Wade Pfau found this counterintuitive 'bond tent' shape reduces failure rates because it minimizes stock exposure precisely when sequence-of-returns risk is highest, in the first years of withdrawals. If markets fall early, you have more bonds to spend from and fewer stocks being sold low; if markets do fine, the growing equity share supports the later decades of a long retirement. It is essentially the opposite of the 'get more conservative as you age' rule of thumb, and it targets the specific window when an early retiree is most vulnerable. Plan your glidepath alongside the Retirement Planner at wealthserene.com/tools/retirement-planner.
Educational disclaimer: All content on WealthSerene.com is for educational purposes only and does not constitute investment advice. Projections and calculations are illustrative — actual results will vary based on market conditions, your specific situation, and many factors outside this tool’s scope. Always consult a qualified financial professional for advice specific to your situation. View full disclosures →