How Sequence Risk Can Derail Your Retirement

Retirement planning often fixates on average annual returns, but the order of those returns matters just as much. In this episode, Lucas and Luna unpack sequence-of-returns risk: the hidden danger that a market downturn in your first few years of retirement can permanently shrink your portfolio, even if the market later recovers. They use a concrete example with the S&P 500 to show how two identical portfolios with the same average return can end up with wildly different outcomes. You'll learn why withdrawal timing magnifies this risk, how a bond tent or cash buffer can smooth the ride, and why financial advisors sometimes urge retirees to avoid withdrawing from stocks during a slump. Lucas also shares a simple spreadsheet exercise you can do at home to see the effect for yourself. If you're approaching retirement or just want your nest egg to last, this episode gives you a practical framework to think about income sequencing. #SequenceRisk #RetirementPlanning #WithdrawalStrategy #BondTent #CashBuffer #MarketDownturn #S&P500 #LongTermInvesting #WealthManagement #FinancialIndependence #Finance #Investing #RetirementIncome #PortfolioRisk #FexingoBusiness #BusinessPodcast #MoneyMatters #WealthBuilding Keep every episode free: buymeacoffee.com/fexingo