The FIRE Bond Ladder Strategy That Beats Sequence Risk

Episode 83 of The FIRE Podcast with Fexingo dives into the mechanics of bond ladders as a buffer against sequence-of-returns risk during early retirement. Lucas and Luna walk through a concrete example: a 50-year-old retiree with $1.2 million, constructing a 5-year bond ladder using Treasury notes and corporate bonds to cover $60,000 in annual expenses without selling equities in a down market. They compare this to the traditional 60/40 portfolio, showing how the ladder reduces withdrawal risk in years 1-10 by locking in income streams. The hosts also discuss the trade-offs: lower long-term returns versus smoother spending, and how to reinvest maturing bonds. No ads, just practical FIRE math for listeners building their withdrawal strategy. #FIRE #FinancialIndependence #EarlyRetirement #BondLadder #SequenceOfReturnsRisk #RetirementIncome #PortfolioConstruction #FixedIncome #TreasuryNotes #CorporateBonds #WithdrawalStrategy #SafeWithdrawalRate #RetirementPlanning #PassiveIncome #FexingoBusiness #BusinessPodcast #FIREPodcast #NoAds Keep every episode free: buymeacoffee.com/fexingo