Experts advise investors to shift from wealth accumulation to income preservation as retirement approaches.

Financial experts suggest that individuals within five to ten years of retirement should transition from a growth-oriented mindset to a distribution strategy. As the retirement date nears, the focus should shift from chasing market gains to building a reliable, predictable income stream to cover daily expenses. Cathy DeWitt Dunn emphasizes that investors should move a portion of their profits into safer vehicles, such as fixed indexed annuities, to protect against market volatility. This approach allows retirees to participate in future growth while ensuring that monthly bills are not entirely dependent on fluctuating stock prices. For those within one year of retirement, Christine Benz recommends a specific checklist: mapping out a 10-year budget, formulating a Social Security strategy, and establishing a safe withdrawal rate. She also advises building a "cash bucket" containing one to two years of anticipated spending to insulate the portfolio from short-term market dips. By prioritizing capital preservation over aggressive growth, retirees can achieve greater confidence in their long-term financial stability.

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