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How Early Retirees Use a Cash Buffer to Avoid Selling Low
In Episode 171 of The Financial Freedom Podcast, Lucas and Luna explore a practical strategy that helps early retirees avoid the pain of selling investments during market downturns: the cash buffer. They break down how a two-to-three-year cash reserve works, using the example of a retiree with a one-million-dollar portfolio and a forty-thousand-dollar annual withdrawal. The episode covers the mechanics of funding the buffer during good years, the psychological payoff of skipping the 'sell low' moment, and how this approach complements the flexible spending floor discussed in earlier…
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