#Mmm the shockingly simple math how to#
#Mmm the shockingly simple math plus#

Asset allocation: Does the “yield shield” really protect against sequence of returns risk? (HYW069).

#Mmm the shockingly simple math how to#

Asset allocation: How to use a bond tent to reduce sequence of returns risk (HYW068).

Early Retirement Now Safe Withdrawal Rate Series.

If you liked this episode, would you please leave a quick review on Apple Podcasts? It’d mean the world to me and your review also helps others find my podcast, too! Links mentioned in this episode: I need your help, please leave a listener review 🙂 If you liked this episode, be sure to subscribe so you don’t miss any upcoming episodes! Have you analyzed your safe withdrawal rate? Do you think it is more or less than 4%? 3%? Let me know by leaving a comment when you’re done.ĭon’t miss an episode, hit that subscribe button… Why sequence of returns risk is front-loaded for early retirees but back-loaded for wage earners.How Social Security factors into your safe withdrawal analysis.

#Mmm the shockingly simple math plus#

Why the business cycle in the year you retire is crucial to your safe withdrawal analysis, plus how to use the Shiller CAPE ratio to estimate your safe withdrawal rate.Why sequence of returns risk and safe withdrawals rates are inextricably linked.The importance of analyzing the conditional probability of failure based on the actual year you retire.The fatal flaw of the “4% rule” and why you might easily run out of money in retirement if you follow it blindly.This is the most important financial planning concept early retirees must grasp to stay retired and guarantee they never have to go back to a j-o-b. So this week, I invited Karsten Jeske, PhD – a former professor, Fed economist, quantitative finance researcher, and early retiree – to the podcast to share insight on how to estimate your safe withdrawal rate in retirement. When it comes to early retirement the most important (and difficult) thing you have to grasp is your safe withdrawal rate.įIRE bloggers rave about “the shockingly simple math behind early retirement,” but they almost never talk about the shockingly un-simple math behind safe withdrawal rates.