Even if people are using this plan, they need to account for taxes they will have to pay and the possible impacts of inflation, she says. Also, as someone reaches the end of phase one, he needs to adjust his plan accordingly.

"Phase two becomes phase one, and you ratchet down your risk," Sharla says.

If they use it correctly, this scenario should help people like James live with a little less worry.

"If he's planned it at all, all he has to worry about being at (today's) lower interest rate is phase one of his money … and his return on that money isn't all that important," she says. "It's just, make sure you get your money back and that it's liquid."

And, as always, the most important thing is to make some kind of plan, whether you do it by yourself or seek professional assistance.

"Designing a plan and then sticking with it is really important," Sharla says. "You're trying to take the emotion out of your investing, so you're not making emotional decisions that will have a negative impact on your investment goals and long-term needs."

Sounds like a good plan to me, James. I hope you find ways to make it work for you.

If you have a personal finance comment or question, send it to gkratz@desnews.com or to the Deseret News, P.O. Box 1257, Salt Lake City, UT 84110.

E-mail: gkratz@desnews.com