The Wall Street Journal recently ran an article with the headline “How to retire during a scary stock market,†and indeed this market is very volatile. That, paired with soaring inflation, makes it very difficult to make sound investment decisions. The stock market performance during the first few years of retirement can have a disproportionate impact on your portfolio due to the impact of compounding. “The five years after retirement are a pivotal period for determining a sustainable lifestyle in retirement,†Wade Pfaua, author of “Retirement Planning Guidebook,†told the Wall Street Journal., A 2014 study found that those who start retirement by reducing their stockholdings to 20-30% of their portfolio and then gradually push it back up to 50-70% in stocks have the highest probability of making their money last 30 years. Those who take an opposite approach, tapering stock holdings from 60% to 30% of their portfolio are likely to run out of money in 28 years. Also, if you retire in a bear market, it is recommended to withdraw less than you normally would (take a 3% withdrawal rather than 4%), at least until the market recovers, can help boost the long-term value of your holdings.