Two Sides of FI REWIND: What’s Wrong with This Popular Retirement Strategy?
Sep 20, 2026
Fritz Gilbert, retirement writer behind The Retirement Manifesto, and Karsten Jeske, financial independence researcher at Early Retirement Now, debate the retirement bucket strategy. They explore cash reserves, bond ladders, rebalancing, withdrawal plans, annuities, bear-market spending, and the psychology of feeling in control. They also share how they’ve shaped meaningful lives after financial independence.
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Focus On Portfolio Decisions That Matter Most
- Karsten Jeske argues that withdrawal mechanics matter less than maintaining a sensible overall allocation, such as roughly 70% stocks and 30% diversifying assets.
- He prioritizes withdrawal rates, future Social Security, and market conditions because those factors can change outcomes far more than choosing cash versus bonds for one payment.
Selling Principal Can Be A Valid Withdrawal Plan
- Use dividends and interest first, then sell fixed-income or other assets to fund spending when income falls short.
- Selling principal is not inherently dangerous when the withdrawal rate is sustainable; returns are expected to replenish at least part of what you spend.
How Fritz Refilled Cash During A Bear Market
- Fritz Gilbert entered 2022 with a full cash bucket after selling stocks during January’s strong market, allowing him to ignore the ensuing bear market.
- Insurance proceeds and a defense stock inherited from his father later created opportunities to refill cash without selling broad-market funds at depressed prices.
