🧯 Sequence of Returns Risk: What Every Retiree Needs to Know | Karsten Jeske | 106

Karsten Jeske also known as “Big ERN” is the founder and genius behind Early Retirement Now. He writes on all topics related to personal finance but is best known for his comprehensive series on safe withdrawal strategies.  In this episode he dives deep into the intricacies of safe withdrawal rates, sequence of return risk, the importance of market valuations for retirees and the 'one more year' syndrome often discussed in the Financial Independence community. Karsten also shares his personal journey from a modest upbringing in Germany to early retirement in the U.S. 🔗 Connect with us https://linktr.ee/cutfi ☕ Buy CUtFI a coffee https://www.buymeacoffee.com/catchinguptofi 🎙️ Record a Message for CUtFI https://catchinguptofi.com/contact-us THANK YOU TO OUR SPONSOR: ➡️ DeleteMe: Your personal data is yours again. Hands-free subscription service that removes you from data broker sites. Enter the code 'Catchingup' at checkout to get 20% off http://joindeleteme.com/catchingup RESOURCES MENTIONED ON THE SHOW: (As an Amazon Associate, I earn from qualifying purchases.) 🌐 Early Retirement Now https://earlyretirementnow.com The Safe Withdrawal Rate Series https://earlyretirementnow.com/safe-withdrawal-rate-series/ Ten things the “Makers” of the 4% Rule don’t want you to know (SWR Series Part 26) https://earlyretirementnow.com/2018/06/27/ten-things-the-makers-of-the-4-rule-dont-want-you-to-know/ Karsten on Two Sides of FI YouTube https://www.youtube.com/watch?v=ZXHh1gtO1lA 🕒 TIMESTAMPS / CHAPTERS: 00:00 The One More Year Syndrome 00:45 The Risks of Retiring After a Bull Market 02:33 Introduction to Catching Up to FI 04:02 Meet Karsten Jeske: The Financial Wizard 05:43 Karsten's FIRE Journey 08:11 Understanding Sequence of Return Risk 19:07 The Importance of Diversification in Retirement 30:35 The 4 Percent Rule: Myth or Reality? 41:05 Combining Trend Following and Valuation Strategies 42:30 Critique of Risk Parity Strategies 51:16 Drawdown Considerations Beyond the 4% Rule 01:00:50 Flexibility in Withdrawal Rates 01:06:19 Karsten's Blog and Final Thoughts 🎧 Listen & Subscribe: Don't forget to subscribe to "Catching Up to FI" for more insightful episodes. Tap the bell icon 🔔 to get notified of new episodes! ✍🏻 Leave a Comment: Share your thoughts or experiences in the comments below. Have questions for our guests or the hosts? Drop them here, and we’ll get back to you! 👍🏻👍🏿 Like, Share, and Subscribe: If you enjoyed this episode, please like, share, and subscribe! Your support helps us bring more valuable content to you. Disclaimer: Our content is for general education and information purposes only. We are not providing financial, legal, or tax advice. Always do your own research or consult a professional before making important decisions.