Simple Strategy, Tactics and Rules for Managing a Nest Egg in Retirement

I thought it might be a good idea to summarize where I believe I am at with my own strategy for managing my nest egg in retirement. To me the hardest thing to do is to get your head around what you can do to take control and protect your nest egg in retirement. Unless you are very lucky it is just foolish to believe that a financial planner or adviser will take care of your money as well as you will.

You are the President of your nest egg fund and as such you are responsible for Retirement Income Strategy Model #2making the final decisions on what you will invest in and how you will manage it. Your financial planner is just one of a number of trusted advisers, and that is all.

As with most things in life you need to use your own common sense and employ people with specialist skills for the investment knowledge you don’t possess yourself. By this I mean if you have a framework for investing your nest egg and managing risk then you can employ people to advise you on what you should invest your nest egg funds in.

As with almost any business technical information is often cheap to buy, but management skills and good judgement are hard to find. So you need to find good sources of technical advise and learn to evaluate it yourself and input it into your overall strategy. Any investment has to meet your investment rules.

I am gradually formulating the rules and strategies I hope to use for managing my nest Egg in retirement.

Rules for Managing Your Nest Egg

  • Avoid Large Losses to my Nest EggBalanceZone Investing
  • Minimize Fees and Charges
  • Minimize Taxes
  • Control the effects of Inflation (this one I still need to research on)
  • Separate Risk-Based Assets from Safe Assets and set a balance.
  • Risk no more that 10% on any risk-based asset.
  • Be prepared to be in Cash for periods at a time.
  • Use the Teeter Totter principle to balance Risk-Based Assets with Safe Assets.
  • Set up an Income Ladder with at least 5-7 years worth of cash for a pension.
  • Use the Otar Retirement Optimizer to monitor my nest egg over time.

Strategy for Managing Your Nest Egg

I have already revised my strategic model on how I think I can manage my retirement nest egg. It is based on using three buckets, the teeter totter and imageJim Otar’s Retirement optimizer. That will become my framework for investing. The buckets are empty right now because I am in cash. But over the next few months I will begin to fill the buckets according to my rules.

Tactics for Managing Your Nest Egg

Risk-Based Investments

The tactics are really the investments I will use to fill the buckets. Do I invest in ETFs, Stock Indexes, or other risk-based investments and add them to the risk-based bucket? I don’t have all the answers yet so I have to do more research on what types of investments I can make.

Safe Investments

What sort of income ladder do I want to create for the safe investment bucket and how can I maximise the return from this bucket over the long term? Do I need to consider an annuity for a time?

These are the tactical decisions and once the strategy is in place you can concentrate on them properly.


The strategy should be a framework to allow you to change tactics as new investment products become available or market or investment conditions change which you may want to take advantage of. The point is if you can create a system that can be used to manage any type of investment and can be adjusted for risk without having to reinvent it, then you can concentrate on the important thing of managing your nest egg in retirement.

What’s more if the model is clear and concise you can define your rules such that your trusted financial planner can help manage it in your absence. Isn’t that the essence of what we want to do? It then frees you to enjoy your retirement but still have your finger on the pulse as it were.

One Response to “Simple Strategy, Tactics and Rules for Managing a Nest Egg in Retirement”

  1. […] Investment Strategies include many of the rules and features I am slowly developing in my own retirement investment model. This […]

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