Latest / The Financial Freedom Podcast with Fexingo: Quitting Your Job, Living Off Investments, Independence
The Sequence Risk That Breaks Early Retirement
In this episode, Lucas and Luna dive deep into sequence-of-returns risk—the hidden danger that can unravel even the best-laid early retirement plans. Using a concrete example of a retiree who left the workforce in 2000 with a $1 million portfolio, they show how withdrawing 4% annually during the dot-com crash and subsequent bear market could have depleted savings by 2015, while the same strategy worked fine starting in 2010. Lucas explains how a bond tent—shifting 3-4 years of expenses into cash or short-term bonds—can protect against this risk, and Luna shares data from a 2024 Vanguard study…
The skinny
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