Our "Good Night's Sleep" strategy is quite simple. We allocate a portion of the portfolio, with enough capital to fund your income needs for the next 4-7 years, to Fixed Income assets. This Good Night's Sleep portion of the portfolio is where you would draw income from during prolonged periods of falling prices in the equity markets (a.k.a. Bear Markets). So you would not have to draw down your equity holdings in the portfolio when equity prices are down.

eg., if you need $70,000/yr of income, then the Good Night's Sleep portion would be 4 X $70,000 = $280,000 worth in fixed income.

Why 4-7 years' worth of income for the Good Night's Sleep portion of your portfolio?
It is because the greatest Bear Markets of this millenium (2000 & 2008) took about 4+ years for the markets to get back to pre-crash levels. Although the average Bear Market takes on average about 17 months to recover, having a 4+ year income cushion in Fixed Income will provide a source of income that will not draw down your equity holdings during extreme market volatility. Therefore, you would not have to sell any equity at depressed price levels, even during great Bear Markets.