FireLotse

Reallocation between building blocks

Life events

A reallocation moves money from one building block to another in a specific year – for example from 📈 Return to 🛡️ Safety. Your wealth stays the same. Only the mix changes, and with it the expected return and the fluctuation (volatility) from that year on.

A typical use is a glide path: a few years before FIRE or your pension you move step by step into Safety. That way your plan depends less on whether the stock market falls in your first withdrawal years (sequence-of-returns risk). The price is a lower expected return.

You specify the size either as a share of the From block in percent or as a fixed amount in today's purchasing power. For a share, FireLotse uses the balance the block is expected to hold in the event year. An amount is reallocated at most up to that balance.

Where this applies: reallocations change the building-block mix. Your calculated FIRE age on the dashboard always uses this mix. In the simulation they apply when "Calculate return from building-block mix" is turned on. The FIRE number stays untouched.

Glide path in three steps:Three reallocations from Return to Safety, 15% each in the three years before your FIRE year. Each step uses the balance left in the Return block after the previous one – without new savings in between, just under 39% moves in total.
Lock in gains:If your High-risk block has grown strongly, you reallocate half of it into the Return block. The volatility of your total wealth goes down, your wealth stays the same.
Try it in the FireLotse calculator

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