I'm getting spooked about the markets

[kcowan]

...About half of our current retirement income comes from a pretty secure pension and SS. The other half comes from a 50-50 mix of stocks and CD's. So if the stock market declines by 50%, we would lose only 12.5% of our income. I think many people are in a similar situation and would weather a market downturn better than you might expect.

We look at equities as a % of net worth. Because fixed assets like real estate are actually liquid and could factor into a major decline. Downsizing or renting for example.

By the time we factor in all the pensions, our WD is under 2% of the investment portfolio, and 1.4% of net worth. Not worth losing any sleep over a potential decline.

 

[targatom2019]

I am 49 yrs and saw my 401k came down to 350K from 500K in 2007 and now back up to little over 1 Million. This was a big lesson learned for me not to be fearful if you are well diversified.


BTW, not having a mortgage helps a lot with taking investment risk.