Latest / The Financial Freedom Podcast with Fexingo: Quitting Your Job, Living Off Investments, Independence
How Sequence of Returns Risk Can Derail Your Early Retirement
In this episode of The Financial Freedom Podcast, Lucas and Luna tackle one of the most underappreciated threats to early retirement: sequence of returns risk. Using a concrete example of a retiree with a $1 million portfolio who retired at the end of 2021, they show how withdrawing 4% annually during a market downturn can compound losses and force portfolio depletion within 15 years. They explain why the traditional 4% rule assumes average returns, but actual returns in the first few years matter more than anything. Lucas breaks down the math of two scenarios—one with average returns of 8%…
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