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Thanks Junkster. I'm more than skeptical of these "averages" that get thrown around. Twain said "Between Kipling and myself we corner all knowledge." He didn't mean to say both were equally brilliant. So WTF is the average investor? Does that have to be U.S. currency - or does it include the stash of "foreign" currency we keep on hand for our visits to Ontario? How about the wife's gold and jewelry collection? She considers it an investment. Does that count? The widow across the street puts her retirement money 100% in insured bank accounts. Is somebody like that included in that "average investor" statistic? Are FDIC insured deposits even counted?This article should be dedicated to MJG. In the article " The average investor in stock mutual funds made 3.8% a year over the past 30 years..." I am skeptical on the methodology used to determine that tidbit.
And why some aging investor with a large nest egg should embrace a 20% and more decline in his portfolio is beyond me. My poor old Dad never recovered from the bear of 73/74 because of the timing of his retirement. Albeit, I would love a bear market about now.
The vast majority of folks do not appear to be that concerned with retirement. And as you've eluded, for some it's already too late. And unfortunately, Welfare nor Social Security can save them. Our American culture is in serious need of a reality check.It does depend on timing. All this buy and hold advice that constantly floods our media really does not apply to retirees or those close to retiring. The risk tolerance changes for some and with that so does their asset allocation.
It is a fine balance between capital preservation and having enough growth so your portfolio will last as long as you need.
Good point @ Junkster.
True that!
I really don't see how most of those under 50 or 55 will be able to retire with any sense of security. Only welfare will save them.
The vast majority of them don't have savings, pensions, large 401k savings and SS dates are pushed out further. Then they get fired/buy outs as they approach 60.
True that!It does depend on timing. All this buy and hold advice that constantly floods our media really does not apply to retirees or those close to retiring. The risk tolerance changes for some and with that so does their asset allocation.
It is a fine balance between capital preservation and having enough growth so your portfolio will last as long as you need.
Good point @ Junkster.
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