How Early Retirees Handle Sequence Risk With a Rising Equity Glidepath

In episode 100 of The Financial Freedom Podcast, Lucas and Luna dig into a counterintuitive strategy for managing sequence-of-returns risk in early retirement: a rising equity glidepath. Instead of de-risking as you approach retirement, you start with a lower stock allocation and increase it over the first decade of withdrawals. They walk through a concrete example: a 45-year-old retiree with a $1.5 million portfolio, a 4% withdrawal rate, and an initial 30% stock allocation that gradually rises to 60% over ten years. The hosts explain why this approach can reduce the probability of portfolio failure in historical bear markets like 1973 and 2000, and they compare it to the more common constant-allocation and bond-tent strategies. Lucas references research by Wade Pfau and Michael Kitces, while Luna questions how this feels psychologically when stocks are down early. They also discuss practical implementation using low-cost index funds and rebalancing rules. The episode closes with a reflection on how the best financial plan is the one you can actually stick with. #RisingEquityGlidepath #SequenceOfReturnsRisk #EarlyRetirement #WithdrawalStrategies #WadePfau #MichaelKitces #PortfolioFailure #BearMarket #BondTent #WealthPreservation #IndexFunds #Rebalancing #FinancialIndependence #RetireEarly #PersonalFinance #FexingoBusiness #BusinessPodcast #Finance Keep every episode free: buymeacoffee.com/fexingo