The FIRE Sequence Risk from RMDs You Are Not Modeling

Episode 110 of The FIRE Podcast tackles a blind spot in most early retirement plans: Required Minimum Distributions. Lucas and Luna walk through how a couple retiring at 40 with a $1.2 million traditional IRA could see their tax bracket jump from 12% in early drawdown to 32% once RMDs kick in at age 73. They break down the actual numbers — $47,000 in RMD income on top of Social Security, plus the Medicare IRMAA surcharges — and explain why the Roth conversion ladder is more urgent than most FIRE calculators show. The episode uses a concrete case: a couple in Portland with a paid-off house and a 4% withdrawal strategy that looks safe until RMDs add $18,000 in extra annual taxes. No scare tactics, just the math most planners skip. #FIRE #RequiredMinimumDistributions #RMD #RothConversionLadder #TaxBracketCreep #SequenceRisk #EarlyRetirement #IRAWithdrawals #RetirementTaxPlanning #MedicareIRMAA #PortfolioDrawdown #FIREPodcast #FexingoBusiness #BusinessPodcast #PersonalFinance #RetirementPlanning #TaxEfficiency #FinancialIndependence Keep every episode free: buymeacoffee.com/fexingo