That’s me. No pension, minimum SS is years away. At current portfolio levels my WR is a bit above 4%. Back to work? NFW. As the song goes, I (we) will survive. I’ll find a way. Sell a kideny? I’ll sell my left testicle, but I ain’t going back to work.The discussion begs the question: when you would consider going back to work, if you are currently FIREd and, say, under age 65?
People will work, companies will hire, there will be profits, and the economy will grow. We just need to purge the system a bit. And like all purging, it’ll be messy.I am wondering about the constant reference to the valuation of the market being really good at this point (usually by equity managers on CNBC). Isn't valuation related to earnings? What if our economy is undergoing a needed deleveraging and earnings do not improve back to 2007 levels? Then isn't the market valuation going to be much lower? I just don't see how relevant it is to compare the valuation now to what was when we don't know what our economy is going to look like in one year, much less five or ten.
Right on.Economics and business are more or less self-righting. The killer is untoward political change
Sure they will. It’ll just take a while – say, another decade or so.My gut feeling is that even after recovery "normal" earnings won't return to 2007 levels
I don’t think stocks are inexpensive right now, but many are fairly priced and some are really good values. Thinking about the past isn’t helpful. Basic principles of investing apply like never before.
Money you need over the next 5-7 years – needs to be in short term high quality fixed income funds. beyond that, money should be in equities or DCA’ing in with a clear plan. At these levels it is just as risky to be out as in the equity markets.
US equities can go down or up, but after the next 7 years or so, the odds are much greater that they will be higher. Much higher.
I think one difference from the past decade – the next decade may be one for the stock pickers vs the indexeres. But this is a matter for another thread.
Michael