Navigating Asset Allocation for Financial Independence

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This chapter focuses on the intricacies of asset allocation as individuals strive for financial independence, emphasizing a balanced approach particularly for those nearing retirement. It critiques traditional models, such as target date funds, and advocates for strategies that minimize emotional influences on investment decisions. The discussion includes the benefits of maintaining a high-equity allocation, the significance of gradual reallocation, and innovative concepts like glide path strategies to manage risk during retirement.

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