This chapter explores the intricate landscape of financial planning for early retirement, emphasizing the challenges of withdrawing funds compared to asset accumulation. It critiques popular calculators for their oversimplified probabilities and stresses the importance of context in market conditions. Through practical insights and personal experiences, the discussion advocates for a tailored approach to determining safe withdrawal rates that align with individual financial circumstances.
What would you do if you ran out of money in retirement? It's hard to imagine a scarier outcome, and yet many on the FIRE path may be at risk for this if they get their portfolio withdrawal rate wrong. In this episode, Eric + Jason talk with Karsten Jeske, the creator of the Early Retirement Now blog. Known by many as "Big ERN", he is an economist who is well known to the FIRE community for his extensive work in characterizing safe withdrawal rates (SWR). In this episode, we dig into Karsten's free, powerful SWR Toolbox, and discuss topics including the downsides of FIRE calculators, 100% stock portfolios, the bucket strategy, why dividend investors are wrong, and his own post-FIRE life. If you're interested in FIRE, you can't afford to miss this information-packed episode!
Show notes: https://twosidesoffi.com/swr