Time-Weighted Allocation
Your money is invested based on when you'll actually need it — not managed as one undifferentiated pool exposed to the same risk all at once.
Four Time Horizons, Four Allocations
The closer the money is to being spent, the less risk it carries. The further out, the more room it has to grow.
See How the Buckets Shift Over Time
A simplified example: age 55, $2M portfolio, retiring at 62, spending $10,000/month, with Social Security starting at 67.
1–3
4–8
9–14
15+
The Mechanics Behind the Buckets
Money is segmented by when you'll spend it
Instead of one portfolio with one risk level, your assets are divided into time horizons — each with an allocation appropriate to how soon that money needs to be available.
Near-term spending is insulated from market risk
The money you'll need in the next 1–3 years sits in cash and cash alternatives. A market downturn simply can't touch it, because it was never exposed to begin with.
Longer-term money keeps working
Assets 15+ years from being spent stay invested for growth, since they have time to recover from any volatility along the way.
Buckets refill on a schedule, not a whim
As years pass and the near-term bucket draws down, it's systematically refilled from the next bucket in line — a rules-based process instead of a reactive one.
What This Actually Protects You From
Sequence-of-returns risk
A downturn right before or during retirement is one of the biggest threats to a portfolio — because it can force selling growth assets at a loss to fund spending. TWA removes that forced sale entirely.
Permission to stay invested
Because near-term spending is already covered, there's no reason to panic-sell long-term holdings during a rough market. The plan gives you the confidence to ride it out.
Less emotional decision-making
The rules for when money moves between buckets are set in advance, not decided in the middle of a stressful market — when judgment is at its worst.
A clear answer to "am I okay?"
Instead of one blended number that's hard to interpret, you can see exactly which years are funded, which are growing, and where you stand at any point in time.
