20% stock market plunge

[mickeyd]

20% drop would make me start rounding up as much cash as I could so as to invest more in the equity market, probably the Vanguard total stock market index fund.

 

[Alan]

I don't think I would do anything - I am 55 / my husband is 57 - both retired - fully invested in a very diversified stock portfolio which has returned about 16% per year for the last several building a nice nest egg about 1/3 investment and 2/3 retirement. I have no bonds, about 30K in my cash account and get $4500 monthly in a pension (after paying my part of health insurance and federal taxes) . I figure I don't need to buy the safe stuff because my pension is worth well over a million so Its like having a million in bonds - is this faulty reasoning or am I on the right track? I also have no mortgage on my home and no debt.

Thoughts? Thanks.

I agree with you, assuming that your pensions provide all the essentials you need. If you are not relying on your investments for much income, then it's not your money you are playing with - it is your heirs'

 

[Spanky]

$4500 net (after tax and health insurance) per month is good enough for me, DW and 2 kids. With that kind of pension, a nearly 100% equity portfolio is fine.