Latest / The Financial Freedom Podcast with Fexingo: Quitting Your Job, Living Off Investments, Independence
The Power of Idle Cash in Early Retirement
We explore why holding a significant cash buffer is not a sign of weakness but a strategic asset for early retirees. Using the example of a hypothetical portfolio with twenty percent cash reserves, we discuss how this liquidity protects against sequence of returns risk during market downturns. Lucas and Luna break down the opportunity cost versus the peace of mind benefit, showing listeners how to calculate their own safe withdrawal rate without selling assets at the bottom.
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The skinny
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