The FIRE Sequence of Returns Risk That Actually Matters

Lucas and Luna dig into a specific, under-discussed version of sequence of returns risk: what happens when you hit a bad market in the first five years of retirement and you're also holding a mortgage. They walk through the math using a concrete example: someone retiring at 52 with a $1.2 million portfolio and a $300,000 mortgage at 6 percent. Lucas shows how the required withdrawal rate can jump from 4 percent to 5.5 percent when you account for mandatory mortgage payments, and how that extra 1.5 percent dramatically worsens sequence risk. They discuss a simple workaround: carving out a dedicated mortgage fund as a separate bucket for the first 5-7 years, so you never have to sell equities into a downturn to make a payment. No abstract theory — just one practical fix for a common blind spot in FIRE plans. #FIRE #FinancialIndependence #SequenceOfReturnsRisk #MortgageInRetirement #RetirementWithdrawal #BucketStrategy #FexingoBusiness #BusinessPodcast #Finance #PersonalFinance #RetirementPlanning #EarlyRetirement #PortfolioRisk #DebtManagement #LumpSum #WithdrawalRate #RiskManagement #FIRECommunity Keep every episode free: buymeacoffee.com/fexingo