Why Your Early Retirement Needs a Cash Buffer

Episode 26 of The Financial Freedom Podcast dives into a counterintuitive but crucial retirement strategy: keeping a cash buffer even when you could be fully invested. Lucas and Luna unpack why having six to twelve months of expenses in cash can actually boost your long-term returns by protecting your portfolio from sequence of returns risk. They walk through a concrete example from 2022's bond rout and show how a simple cash cushion let early retirees avoid selling stocks at a loss. Plus, practical advice on where to park that cash without leaving too much return on the table. Essential listening for anyone building or living in their early retirement plan. #EarlyRetirement #Fire #CashBuffer #SequenceOfReturnsRisk #RetirementPlanning #PortfolioManagement #PersonalFinance #Investing #WealthManagement #FinancialIndependence #RetirementIncome #CashReserves #BondMarket #StockMarket #2022Crisis #FexingoBusiness #BusinessPodcast #FinancialFreedom Keep every episode free: buymeacoffee.com/fexingo