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AlphaTangoFoxtrt t1_iufyx78 wrote

And in November it may tank.

For retirements, always remember youre measuring in decades not months or quarters.

Properly diversify, and properly balance for how long you have.

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Bob-Doll t1_iug2uj8 wrote

Or it may rise.

My advisor and I have talked about bucketing money into three groups when you retire:

Bucket 1 has what you need to live on for the next 5 years and it’s invested in cash or MMA/HYSA

Bucket 2 is for the next 10 or so years and is conservatively invested in 60/40 bond/stock mix or whatnot.

Bucket 3 is everything else and you invest that with a long term investment horizon.

That way you still have exposure to growth stocks but you don’t get in a position where you see 40% of your net worth disappear in a bad down market.

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Petersm66 t1_iufz0t7 wrote

Let's not mention the prior 10 months were a disaster.

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oledawgnew t1_iug1dgn wrote

Don’t forget about the gains for the twelve year period from 2009 through 2021. During that timeframe it was only down twice: -2.23% in 2015 and -5.63% in 2018. Three years during the same timeframe it was up more than 20%. So the moral of this story is “time in the market beats timing the market.”

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Bob-Doll t1_iug2dba wrote

That’s kind of the point. Unlike rational markets, when stock prices fall demand falls as well. People sell their stocks because they’re afraid it will fall more. And then there’s all the doom and gloom in the media.

And then, out of nowhere, the market rises 14.4% in a month. And people start to get interested again. But the people sold at the low are now buying it at a higher price.

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IndexBot t1_iug08at wrote

This post is a bit off-topic here, but we would like to help you learn about investing!

  1. Start with the PF Investing wiki page.
  2. If you have questions, please ask on the weekday or weekend thread (please wait until Friday afternoon if the Tax Thursday thread is the current sticky). If that link doesn't work, it's the second post from the top on /r/personalfinance.

Note that rather than stock picking or speculating, our focus here is on being diversified, never being too risky or not risky enough, and investing for the long run. Discussions about active investing, investing in individual stocks, sharing investment ideas, etc. are off-topic here.

If you have questions about this removal, please message the moderators.

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