Ed_The_Gypsy
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
"Anyone else feeling a little nervous with S&P hitting 4 year highs?"
Nope. I am
a) diversified, and
b) in for the long haul.
"The market will fluctuate."
We get back to personal tolerance for risk. Expect the market to lose value from time to time, historically for periods up to 10 years at a time. Less Antman argues that a properly chosen 50/50 US/international equities portfolio will recover in not more than about 5 years (he later stretched it a little to ~ 5.5 years). This is one argument for a bond ladder for annual expenses that spans periods of negative return, say 5 years. This is also why one should not invest in equities with money that will be needed in less than ten years. Also, for keeping withdrawal rates low so as not to drain thhe bucket before the rains can fill it up again; keep WR not more than the SWR [whatever you think that might be].
I used to freak out when my mutual funds would drop 10% (e.g., Magellan once). It took a while to develop the nerves of steel (coming from the confidence that the markets will recover--eventually).
Just my point of view.
Ed
Nope. I am
a) diversified, and
b) in for the long haul.
"The market will fluctuate."
We get back to personal tolerance for risk. Expect the market to lose value from time to time, historically for periods up to 10 years at a time. Less Antman argues that a properly chosen 50/50 US/international equities portfolio will recover in not more than about 5 years (he later stretched it a little to ~ 5.5 years). This is one argument for a bond ladder for annual expenses that spans periods of negative return, say 5 years. This is also why one should not invest in equities with money that will be needed in less than ten years. Also, for keeping withdrawal rates low so as not to drain thhe bucket before the rains can fill it up again; keep WR not more than the SWR [whatever you think that might be].
I used to freak out when my mutual funds would drop 10% (e.g., Magellan once). It took a while to develop the nerves of steel (coming from the confidence that the markets will recover--eventually).
Just my point of view.
Ed
