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What would you do if you ran out of money in retirement? It’s hard to imagine a scarier outcome, and yet many on the FIRE path may be at risk for this if they get their portfolio withdrawal rate wrong. In this episode, Eric + Jason talk with Karsten Jeske, the creator of the Early Retirement Now blog. Known by many as “Big ERN”, he is an economist who is well known to the FIRE community for his extensive work in characterizing safe withdrawal rates (SWR). In this episode, we dig into Karsten’s free, powerful SWR Toolbox, and discuss topics including the downsides of FIRE calculators, 100% stock portfolios, the bucket strategy, why dividend investors are wrong, and his own post-FIRE life. If you’re interested in FIRE, you can’t afford to miss this information-packed episode!
**Show notes: https://twosidesoffi.com/swr
**ERN Safe Withdrawal Rate Toolbox (free):
https://earlyretirementnow.com/2018/08/29/google-sheet-updates-swr-series-part-28/
Timestamps:
00:00 Oversimplifying is risky!
05:55 FI calculator hazards
09:38 Calculating safe withdrawal rates
16:43 Overly conservative strategy?
21:13 Holding 100% stock
30:02 Selling all my bonds?
33:08 Critiquing bucket strategies
37:10 Increasing risk in retirement
45:46 Challenging dividend strategies
51:11 Transition to FIRE
59:23 Karsten’s post-FIRE life
**Show notes, tools, resources + information: http://twosidesoffi.com
**Our podcast: https://twosidesoffi.com/podcast/
**Eric’s “NOW” page at 30X40 Design Workshop: https://thirtybyforty.com/now
**Jason’s blog: https://thenextphaseisnow.com
**Eric’s YouTube Channel: https://thirtybyforty.com/youtube
#twosidesoffi #financialindependence #firemovement
@30X40 Design Workshop
**Note: This content does not constitute investment advice and is being presented for informational and educational purposes only.
The post What the FIRE Community Gets Wrong – Talking with Karsten Jeske appeared first on HumanitasConnects.
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