Oh My, it is a tough time! Glad you asked the question because I am sure we have some folk who weathered this decline a few times over. Personally, I did my first retirement as a 52 y/o in 2008 (great recession). Most of my assets were tied up in the market and I saw my worth drop considerably making FI impossible. So, at 52 I went back to work for another 10 years and became FI once again. Today at 64 I don't plan to suit up again!. I keep enough cash available to cover 3 years of expenses (my first defense bucket). After that (let's hope we don't need it) I'll tap after tax funds that are in Bonds. Just make sure you have enough cash available to weather this shock.How many folks on this ER site ER’d during a recession like 2008 or a prior one?
-How did you handle it?
Thanks
Always keep a couple years worth of expenses in cash. The market going down only matters if you have to sell equities. If you deplete your cash reserves then life on a bare bones budget if needed until the market recovers so you sell the least amount possible at a low.
Great time to convert Traditional to Roth!!!
The danger to retirees has not been retiring before/during a bear market or recession.
How many folks on this ER site ER’d during a recession like 2008 or a prior one?
-How did you handle it?
Thanks
Retired March 08, doing fine, COLAd pension covers basic expenses
How many folks on this ER site ER’d during a recession like 2008 or a prior one?
-How did you handle it?
Thanks
The thing that gives me hope is that the enemy seems to be known. People and markets are reacting to the current situation that I believe will pass rather soon. Of course real damage has been done. The world is going to produce and consume less as we react to this. But, when we see the light, there’s no reason we won’t come back with full force. If I was a traveler and I don’t get to travel this year, I’m going to travel once the all clear is sounded, maybe a bit more. If I’ve been staying home, once I feel comfortable going out again, I’m going to hit some restaurants I’ve missed . . .
Having a few years of spending money is the thing that helps me the most to stay calm, but second is that I see this as an event, not a systemic breakdown like the great financial crisis of 2008.
How many folks on this ER site ER’d during a recession like 2008 or a prior one?
-How did you handle it?
Thanks
How many folks on this ER site ER’d during a recession like 2008 or a prior one?
-How did you handle it?
Thanks
I retired in November, 2009. The market had started on its way back up, but it is tough to figure that out when you are right in the middle of it. The market analysts on the internet and TV were saying that the market was just catching its breath before an even deeper dive, predicting a "double dip" recession.How many folks on this ER site ER’d during a recession like 2008 or a prior one?
-How did you handle it?
Thanks
I retired in November, 2009. The market had started on its way back up, but it is tough to figure that out when you are right in the middle of it. The market analysts on the internet and TV were saying that the market was just catching its breath before an even deeper dive, predicting a "double dip" recession.
I was just so glad to retire that I was determined to make it work somehow. And despite all those pessimistic rumors, everything turned out in my favor. I didn't worry a bit about the market, but just kept an eye on it so I'd know what it was doing.
This was the beginning of the most blissful time of my life (2009-2020+)
I would not retire in this environment, I would maximize my savings and buy all equities....they are on sale.