Balance Bad with a Bucket Strategy

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The bucket strategy is an effective retirement tool that allows for orderly asset allocation and rebalancing while addressing market fluctuations. It emphasizes the importance of maintaining a cash reserve to meet obligations, regardless of market conditions. By having a predetermined number of years of fixed income, retirees can ensure access to liquid assets during downturns, thereby enhancing financial security and providing the necessary flexibility in asset management.

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