How Safe Withdrawal Rates Change With a Rising Market

With the S&P 500 up roughly 15 percent over the last twelve months, early retirees who locked in a 4 percent withdrawal rate a few years ago may now be leaving money on the table — or, worse, overspending. In this episode, Lucas and Luna walk through a concrete example: a retiree with a $1.2 million portfolio in early 2024 who kept withdrawals flat. By May 2026, that same portfolio has grown to roughly $1.5 million. Should that retiree increase their spending? Lucas explains the 'percentage of portfolio' approach versus the 'inflation-adjusted' approach, and why the gap between the two can cost or save a decade of lifestyle. They also discuss a practical midpoint: the ratcheting withdrawal strategy, where you increase spending only after a portfolio gain of 10 percent or more. No dogma — just a clear framework for adjusting your number as the market moves. #SafeWithdrawalRate #4PercentRule #RatchetingStrategy #RisingMarket #PortfolioRebalancing #EarlyRetirement #FIRE #WithdrawalStrategy #RetirementSpending #MarketGains #SequenceOfReturns #RetireeIncome #FinancialIndependence #PersonalFinance #Investing #FexingoBusiness #BusinessPodcast #TheFinancialFreedomPodcast Keep every episode free: buymeacoffee.com/fexingo