What is a drawdown plan in retirement?

A drawdown plan is a strategy for turning your portfolio into dependable income. It outlines what accounts you’ll withdraw from, in what order, how much you’ll withdraw each year, how you’ll handle market downturns, and how taxes and fees will be managed.

Do accelerated weekly mortgage payments really save money?

Accelerated weekly payments can reduce interest costs because you make payments more frequently and typically pay the equivalent of one extra monthly payment per year. That often shortens the amortization and lowers total interest paid over time.

Should I stop making extra mortgage payments and invest instead?

It depends on your interest rate, risk tolerance, timeline, and cash-flow needs. Pausing extra mortgage payments can increase flexibility and allow you to build a cash cushion or invest, but it may slow down mortgage payoff. Many people choose a balanced approach that maintains stability while building liquidity.

How big should a cash buffer be before early retirement?

A common approach is to hold several months to a couple years of expenses in cash or cash-like instruments, depending on job stability, portfolio volatility, and how close you are to retiring. The goal is to avoid selling investments during a downturn and to reduce stress during transitions.

Is moving from growth investing to income investing always the right move?

Not always. Some retirees keep a growth component to fight inflation and reduce the risk of outliving their money. Many people shift gradually toward a more balanced mix of growth and income as they get closer to needing withdrawals, rather than flipping all at once.

Can side businesses help accelerate early retirement?

Yes. Even modest, consistent side income can reduce how much you need to withdraw from investments, improve financial resilience, and shorten the time to financial independence—especially if you can grow revenue without scaling your personal workload.

07 Jan 2026 4 min read Personal Finance Basics

Why 2026 Is the Turning Point

It’s January 5, 2026, and I already feel burned out just sitting in front of my work computer.

I took two full weeks off around the holidays and didn’t check my work email, phone, or Teams once. Years ago, that would have been enough to feel refreshed and ready to get back to work. I had a great time with friends and family. But this morning, almost immediately, I felt the weight return. The thought that kept repeating was simple and unsettling:

I don’t want to be here anymore.

If this sounds familiar, you’re not alone, and it might be a signal worth listening to.

We’ve been saving toward early retirement for years, but this feeling made something clear: I need to accelerate the plan in 2026. Not impulsively. Not recklessly. But deliberately. I don’t think any amount of vacation time will fix this. This doesn’t feel like burnout, it feels like misalignment.

I know it’s unrealistic to retire within a year. But it is realistic to start working on a proper retirement plan, specifically a drawdown plan that turns savings into income. Even acknowledging that shift feels like progress.

Acceleration vs. Optimization

The changes I’m thinking about fall into two categories: optimizations that improve efficiency and resilience, and structural shifts that move us closer to financial independence.

On the surface, the list looks simple. Executing it won’t be. But clarity usually comes before action.

Financial Optimizations

These are changes that improve flexibility, reduce risk, and buy time.

Switch to accelerated weekly mortgage payments - Accelerated weekly payments reduce interest accrual, shorten the amortization period, and save several thousand dollars over the life of the mortgage, all without changing the total annual payment by much.
Reduce extra mortgage prepayments - We’ve been putting an extra $500 toward principal every month. I plan to pause this and redirect the money toward investments or a larger cash cushion. Liquidity matters more in the years leading up to early retirement.
Build a meaningful cash buffer - This isn’t about timing the market. It’s about smoothing volatility and reducing the chance that a market downturn forces bad decisions. A solid cash buffer buys peace of mind.
Reduce personal expenses - This ties directly into my goal of living more simply. Lower expenses reduce the income required to retire and increase optionality. Every dollar not spent is a dollar that doesn’t need to be earned.

Structural Changes

These are the shifts that actually accelerate early retirement.

Invest time and money into side businesses - Over the past 16 years, I’ve built several small sites and apps that generate modest revenue. I’ve reinvested everything so far. By adding some additional capital, and hiring freelancers where it makes sense, I believe I can materially increase that income. While this slightly conflicts with my "simple living" philosophy, the goal is leverage, not more work.
Shift the investment mix toward income - For more than 15 years, we’ve focused almost exclusively on growth, primarily through ETFs like XGRO. In 2024, we started adding REITs. Going forward, we’ll continue increasing exposure to income-producing assets to support a future drawdown strategy, rather than maximizing growth at all costs.

What This Is and Isn’t

This isn’t about quitting tomorrow or making reckless decisions. It’s about intentionally reshaping the next few years so work becomes optional sooner, not later.

This is also not a declaration that I "hate my job". It’s an acknowledgment that continuing on the same path indefinitely no longer feels sustainable, and that pretending otherwise won’t make it true.

What Comes Next

In future posts, I’ll break down each of these decisions in more detail, especially:

How I’m thinking about drawdown planning
Cash buffer sizing and purpose
Mortgage optimization vs. investing
Shifting from growth to income without sacrificing flexibility

On the surface, these steps look straightforward. Executing them won’t be. But I’ve always liked challenges, especially the ones that move me closer to freedom.

Acceleration vs. Optimization

Financial Optimizations

What This Is and Isn’t

What Comes Next

Optimized

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