Latest / The Financial Freedom Podcast with Fexingo: Quitting Your Job, Living Off Investments, Independence
Why Your Early Retirement Needs a Cash Buffer
Episode 26 of The Financial Freedom Podcast dives into a counterintuitive but crucial retirement strategy: keeping a cash buffer even when you could be fully invested. Lucas and Luna unpack why having six to twelve months of expenses in cash can actually boost your long-term returns by protecting your portfolio from sequence of returns risk. They walk through a concrete example from 2022's bond rout and show how a simple cash cushion let early retirees avoid selling stocks at a loss. Plus, practical advice on where to park that cash without leaving too much return on the table. Essential…
The skinny
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