Gone4Good
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Sep 9, 2005
- Messages
- 5,381
That's the point that almost always gets missed in these AA discussions. The lower AA fans point out the big drops, but often ignore that the drop is from a point that would not have been realized at the lower AA. If you are still higher after that drop, you are better off, no?
That will certainly be true in a case where markets rise, drop, and rise to new highs. That's the history on which everyone's retirement plan is based.
And if history simply repeats, I don't have anything to worry about regardless of whether my stock allocation is 50%, 60, 70, 80, 90, or 100. It's all just a question of how much gravy I get served.
My retirement concern isn't that history will repeat. It's that it won't.