The Sequence-of-Returns Risk Tax Strategy

In this episode of Retirement Planning with Fexingo, Lucas and Luna explore a little-known tax strategy for mitigating sequence-of-returns risk in early retirement. Using a hypothetical retiree with a $1.2 million portfolio, they walk through how a tactical Roth conversion ladder can reduce the impact of a market downturn in the first five years. Lucas explains the math behind withdrawing from taxable accounts first, then converting traditional IRA funds to Roth at low marginal rates, and finally spending Roth basis tax-free. Luna pushes back on the complexity, and they discuss the role of cash buffers and the 'bond tent' approach. The episode drills into a specific case: a 62-year-old who retires into a bear market and uses a combination of a cash reserve and partial Roth conversions to avoid selling stocks at a loss. Listeners will come away with one concrete strategy they can discuss with a fee-only planner. Episode 23 of the series. #SequenceOfReturnsRisk #RothConversionLadder #TaxStrategy #RetirementPlanning #BearMarketProtection #PortfolioWithdrawalStrategy #BondTent #CashBuffer #TaxableAccount #TraditionalIRA #RothIRA #MarginalTaxRate #EarlyRetirement #FinancialPlanning #FexingoBusiness #BusinessPodcast #Finance #Retirement Keep every episode free: buymeacoffee.com/fexingo