A common strategy during drawdown is to use a series of “buckets” to set aside money to avoid Sequence of Returns Risk. The most common way this is performed is with a 3-bucket strategy. A description is copied below from this source: https://www.thepeakfp.com/blog/retirement-bucket-strategy-comprehensive-guide

”“” 1. Short-Term Bucket The short-term bucket is focused on low-risk assets (cash equivalents) with short maturities, such as cash savings accounts, certificates of deposit, money market accounts, or VERY short term treasury bills (think 1-6 months).

Income needs in the present can be safeguarded from stock market volatility while remaining accessible as an income source.

Typically, one would position between 1-5 years of expenses in low-risk cash equivalents within this short-term bucket.

1. Intermediate-Term Bucket The intermediate bucket, or medium-term bucket, is designed to cover expenses for years 5-10 of retirement.

Money in the intermediate bucket should be invested in conservative to moderate risk investments that can at least match inflation.

The goal with the intermediate bucket is to match or very slightly outpace inflation without taking on significant risk to your investment principal.

Long-Term Bucket In this strategy, the long-term bucket is the higher risk portion of your retirement portfolio.

The money in the long-term bucket is invested with an eye on a 10+ year time horizon, providing the opportunity for significant growth.

The growth from the long-term bucket is used to refill your short term and intermediate term buckets, which we will explain in more detail in the rebalancing portion of this guide. “”“

Obviously depending on ones own risk preferences the exact amount of years of expenses in each bucket will vary, but it would be really nice if ProjectionLab had a way to set up these buckets easily.

Right now Cash Flow Priorities only allows you to send funds to accounts based on leftover income which is typically useful during accumulation but not drawdown since there is no leftover income to direct.

Right now in ProjectionLab you can set a bond % over time but this isn’t quite the same as specifying a certain number of years of expenses in cash, then a certain number of years of expenses in bonds/T-bills, and then the rest in stocks.