Summary of Reached FI at 60: How to Switch from Accumulation to Drawdown with Bill Yount

Overview of Reached FI at 60: How to Switch from Accumulation to Drawdown with Bill Yount

This BiggerPocketsMoney episode interviews Bill Yount (host of Catching Up to FI) about hitting financial independence at 60 after a 10-year catch‑up plan. Bill explains how he confirmed FI with a fee‑only advisor, why he shifted his portfolio from a simple 3‑fund accumulation approach into a risk‑parity decumulation portfolio, how he’s planning withdrawals and family gifting, and why he engaged a flat‑fee advisor to manage the transition.

Key takeaways

• Bill reached FI by dramatically increasing savings (from single digits to ~40%) and reducing big lifestyle expenses (house downsizing, used cars), plus increased household income.
• He validated retirement readiness with a fee‑only planner who stress‑tested his cashflow and returned a very high probability of success using a 5% withdrawal rate.
• To reduce sequence‑of‑returns risk, he moved from an 85/15 three‑fund portfolio to a risk‑parity (multi‑asset) portfolio designed to limit drawdowns and volatility during retirement.
• He hired a flat‑fee, advice+investment manager (found using a focused search prompt) to offload complexity and provide continuity for his spouse; cost quoted: ~$8,400/year.
• Withdrawal order: taxable brokerage first (use LT cap gains), then pre‑tax accounts (401k/IRA), then Roths last — with asset location optimized so slower‑growing, stable assets sit in pre‑tax accounts.
• He’s building a tax‑optimized living/giving plan to help adult children build wealth (Roth/HSA funding, annual lump sums within gift tax limits).

Bill’s path to FI — timeline & actions

• Wake‑up moment ~2016 (age ~52): realized they weren’t on track and pivoted hard.
• Major levers pulled:
  • Wife returned to full‑time work → increased household income.
  • Downsized home; stopped leasing new cars; reduced big-ticket costs.
  • Increased savings rate to ~40% (from single digits) and invested aggressively for ~10 years.
• Ongoing lifestyle: still working as an emergency physician but moving toward a glide‑path reduction of shifts over 2–3 years rather than an abrupt stop.

Portfolio: accumulation → decumulation

Accumulation portfolio (pre‑advisor)

• Three‑fund, high‑equity approach: ~85% stocks / 15% bonds (US/international split ~70/30).

New decumulation (risk‑parity) "Optimist Prime" portfolio (Bill’s allocation)

• Equities (total 44%):
  • 16% US large‑cap growth
  • 16% US small‑cap value
  • 6% international growth
  • 6% international value
• 1% Bitcoin
• 30% long‑term Treasuries (ballast/recession insurance)
• 11% gold ETF
• 11% managed futures
• 3% cash
• Rationale: more uncorrelated assets across different macro environments => smaller, shorter drawdowns compared to typical stock/bond mixes.

Expected performance characteristics

• Lower volatility and shallower drawdowns (backtests show <20% drawdowns vs 30–50% in 60/40 scenarios).
• Lower peak upside vs an all‑equity portfolio, but better downside protection; expected long‑term returns projected in the ~7–8% range (a couple points lower than high‑equity returns).

Withdrawal strategy & taxes

• Planner used expense data (Monarch) and stress‑tested spending ($18k–$20k/month).
• Planner used a conservative approach with a 5% safe withdrawal rate for their projections.
• Planned withdrawal order:
  1. Taxable brokerage (long‑term capital gains / tax‑efficient),
  2. Traditional pre‑tax accounts (401k/IRA),
  3. Roth accounts last.
• Asset location: slower‑growing, lower‑volatility holdings (bonds, gold, managed futures) placed in pre‑tax accounts to reduce future RMD inflation; growth assets held in Roth/taxable to maximize tax‑efficient growth.
• Taxes: Bill modeled retirement taxes (RightCapital) and expects taxes to fall in retirement; RMD suppression becomes less of a concern when assets are structured appropriately.
• Social Security: mathematically optimal to wait to 70 for most, but individual health and goals may justify earlier claiming; Bill plans to use opensocialsecurity.com analysis as part of his matrix.

Advisor selection & cost rationale

• Searched for a niche advisor who specializes in risk‑parity portfolios; used an AI‑assisted search prompt to find candidates.
• Chosen advisor: flat fee, comprehensive planning + investment management. Fee cited: ~$8,400/year.
• Reasons to hire:
  • Bill prefers to focus on life rather than day‑to‑day investing.
  • His spouse is not interested in money management; continuity matters.
  • Advisor acts as insurance for cognitive decline, mistakes, and smooth succession.
• Cost perspective: flat‑fee advisor can be dramatically cheaper than AUM at scale (e.g., <$10k/year vs $40–50k/year in AUM‑style fees at multi‑million portfolios).

Family, giving, and legacy planning

• Children: twins (26). One living at home (between jobs), the other independent.
• Plan: tax‑optimized living/giving — fund their Roths/HSAs where appropriate; use annual lump‑sum contributions (January) to top off accounts based on gift tax exclusion.
• Gift tax exclusion referenced: $19,000 for 2026 (useful for year‑by‑year funding).
• Practical approach: ensure kids have skin in the game (matching), automate savings, provide a session with the advisor to teach financial habits.

Psychological & lifestyle implications

• Reaching FI didn’t change life overnight — it created options and peace of mind.
• Bill is intentionally pursuing a glide‑path away from full time clinical work rather than a cliff retirement.
• Financial freedom reduces stress at work and allows more presence; money becomes a tool for life goals rather than the focus.
• Warning: “100% chance of success” outputs can create false reassurance; monitoring and flexibility are important.

Tools, resources, and people mentioned

• Expense & budgeting: Monarch (used to track monthly expenses and upload to planner).
• Portfolio backtesting & analysis: Portfolio Visualizer, Portfolio Charts, Testfolio.
• Social Security planning: opensocialsecurity.com (Mike Piper referenced).
• Financial modeling: RightCapital (used by Bill’s planner).
• Notable influencers: Frank Vasquez (risk parity advocate), Ray Dalio (diversification principles).
• Account strategies: solo 401(k) for high self‑employment income (large catch‑up contributions possible).

Notable quotes

• “Money is the least important thing here once you get there.”
• “100% chance of success is not necessarily a success in the truest sense” — be careful with false reassurance.
• “I needed to transition my portfolio to a more conservative one… instantly I felt better.”

Action checklist (if you’re approaching retirement or FI)

• Track real expenses for 2–3 years (use Monarch or similar).
• Run a retirement stress test (DIY tools and/or a fee‑only planner).
• Decide risk tolerance and plan decumulation: consider multi‑asset/risk‑parity options if sequence risk worries you.
• Optimize account location: plan which accounts to draw from first and where to hold slower‑growing vs growth assets.
• Model retirement taxes and Social Security claiming strategies.
• Search for a flat‑fee advisor if you want help implementing and managing the glide path — interview for specific expertise (e.g., risk‑parity).
• Design a tax‑optimized giving plan for adult children (use current gift exclusion limits; coordinate Roth/HSA contributions).

This episode is especially useful for late starters, high‑income professionals, and anyone shifting from accumulation to decumulation and seeking practical ways to reduce sequence‑of‑returns risk while planning intergenerational gifts and an emotionally sustainable retirement glide path.