What are Big Ern's thoughts?


Big Ern, also known as Carsten, has shared various thoughts on topics related to finance and retirement. Here are some key points:

  1. Retirement Planning: Big Ern emphasizes the importance of flexible retirement planning, suggesting that safe withdrawal rates should be adaptable and that plans should be revised as circumstances change. He uses the analogy of changing weather during a hike to illustrate the need to adjust plans in response to evolving financial landscapes 1.

  2. Investment Strategy: He advises against making drastic, all-in or all-out investment decisions, recommending instead the use of dollar-cost averaging and incremental adjustments to manage risk effectively. This approach helps avoid the potential pitfalls of market timing 2.

  3. Emergency Funds: He questions the traditional wisdom of maintaining substantial emergency funds, pointing out a possible inconsistency in risk tolerance between large investment portfolios and conservative emergency funds. He advocates for a more integrated view of one's financial situation 3.

    Retirement Withdrawal Rates

    Big ERN explains the importance of adjusting your retirement withdrawal rates and how to calculate safe withdrawal rates based on different withdrawal frequencies. He also highlights the need to be flexible with your plan and adjust it as circumstances change.


    199 | Making Portfolio Adjustments with Big ERN
  4. Wealth Building: For the average individual or family, Big Ern suggests a simple and effective approach to building wealth through investments in total stock market index funds or S&P 500 funds. This strategy minimizes complexity and maximizes long-term growth potential 4.

  5. Sequence of Return Risk: He discusses the importance of considering sequence of return risk when planning for retirement, particularly the timing of investments in relation to retirement. Diversifying investment timing across business cycles can help mitigate this risk 5.

These insights reflect Big Ern's pragmatic approach to financial planning, focusing on adaptability, simplicity, and risk management.