🧯 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.

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🌐 Early Retirement Now
https://earlyretirementnow.com

The Safe Withdrawal Rate Series
https://earlyretirementnow.com/safe-w...

Ten things the “Makers” of the 4% Rule don’t want you to know (SWR Series Part 26)
https://earlyretirementnow.com/2018/0...

Karsten on Two Sides of FI YouTube
   • What the FIRE Community Gets Wrong - ...  

🕒 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


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