How Your Sequence of Returns Risk Can Break or Make Retirement

In this episode of Wealth Building with Fexingo, Lucas and Luna dive into sequence-of-returns risk — the often-overlooked danger that the order of investment returns, not just the average, can devastate a retirement portfolio. Using a concrete example of two retirees with identical 7% average returns but vastly different outcomes, they explain why the first five years of withdrawals are critical. Lucas breaks down how a 50% stock market drop in year one can force a retiree to sell shares at the worst possible time, permanently depleting principal. They also discuss practical strategies to mitigate this risk: holding two to three years of expenses in cash or short-term bonds, using a rising equity glide path, and considering a buffer annuity for essential income. The hosts tie it to today's market environment — with elevated equity valuations and stubborn inflation — and offer a sobering but actionable framework for anyone approaching or in early retirement. #SequenceOfReturnsRisk #RetirementPlanning #PortfolioRisk #SafeWithdrawalRate #MarketTiming #RetirementIncome #BondLadder #CashReserve #EquityGlidePath #Annuity #Inflation #StockMarketVolatility #WealthManagement #FinancialIndependence #PersonalFinance #FexingoBusiness #BusinessPodcast #Finance Keep every episode free: buymeacoffee.com/fexingo