Originally Posted by thinker25
The situation of the stock market dropping had not happened and I think that affects how you look at investing. A lot of people lost a lot of money - even if temporarily - and got scared, sometimes permanently.
So the psychological approach to investing in 2007 was quite different, IMO, than it is now - for many people.
I just skimmed the article, as I said. Perhaps they included this. But I am generally wary about information that doesn't include the past 2 years of the stock market dropping.
Very good point. I just looked and the DOW was at 11,500 on Jan 2, 2000, and as we near Jan 2, 2011, it is still below that point. As a matter of fact, the DOW was only above the starting value of 11,500 for 2 years of the 10. Only the 2 years from Sep 2006 until Sep 2008 were above 11,500.
Would be interesting to see the overall financial impact of their net worth due to taking the advice of the paper or starting SS early at 62.