The risk of bad market returns in the first few years of retirement, which can permanently damage your portfolio even if average returns are fine. Mitigated with bond tents and cash buffers.
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Related terms
(Income − Expenses) ÷ Income. The single most important variable for years-to-FIRE. A 50% savings rate reaches FIRE in ~17 years; a 20% rate takes ~37.
Gradually increasing your bond allocation in the years leading up to retirement, then reducing it again after — a "tent" shape — to buffer against sequence risk.
How your asset allocation changes over time — typically shifting from stock-heavy to more bonds as you approach and enter retirement.
Earning income in a high-cost-of-living area and spending it in a low-cost one. A common lever to accelerate or enable FIRE.
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