Stop watching. It will make you crazy. Check maybe once a year and have faith in the long-term trends.... I think we have plenty but as March showed us, one could lose tens of thousands of dollars in one day.
No one knows for sure. Vast majority of folks believe that the stock market will generally go up in value. Try FireCalc which will simulate your numbers using data since before 1900 (?)How do you know when you have enough to retire when the stock market is so wild? Even with diversification, it is crazy.
I think we have plenty but as March showed us, one could lose tens of thousands of dollars in one day.
Well, not exactly. From the FireCalc home page:... FireCalc will let you know if you are likely to be OK or not
How do you know when you have enough to retire when the stock market is so wild? Even with diversification, it is crazy.
I think we have plenty but as March showed us, one could lose tens of thousands of dollars in one day.
I recall a posting saying that Firecalc updated its recent market data, does this include the great recession of 2020 data in its models?
Firecalc usually has its data updated around Apr/May once a year for data up until 01/01 of the the current year, so no Mar 2020 update yet.
Stop watching. It will make you crazy. Check maybe once a year and have faith in the long-term trends.
I agree. When you're making a big decision like when to ER, you don't just look at the market once a year. Especially when it really seems overpriced right now.This has nothing to do with watching the markets on a daily basis. It has to do with how do you know when you have enough and can retire without worrying if the market goes down.
I feel like we have enough now but if the market were to go down like it did in March, we would have sleepless nights. I guess that is my answer!
This has nothing to do with watching the markets on a daily basis. It has to do with how do you know when you have enough and can retire without worrying if the market goes down.
I feel like we have enough now but if the market were to go down like it did in March, we would have sleepless nights. I guess that is my answer!
Then you are holding too much equity. It may not have anything to do with the amount you have but more your tolerance for volatility.This has nothing to do with watching the markets on a daily basis. It has to do with how do you know when you have enough and can retire without worrying if the market goes down.
I feel like we have enough now but if the market were to go down like it did in March, we would have sleepless nights. I guess that is my answer!
I didn't say it was easy. The problem is that looking frequently doesn't give you any information. It just gives you data that is almost pure noise. Here is a graphic I use when discussing this in my Adult-Ed investing class:I agree. When you're making a big decision like when to ER, you don't just look at the market once a year. Especially when it really seems overpriced right now.
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I think we have plenty but as March showed us, one could lose tens of thousands of dollars in one day.
That's exactly what we do.If you don’t sell equities during a severe market downturn, then you really have not lost anything. Holding enough stable value assets to live on during a bear market will allow you to sleep better. Since February, I have been spending from my money market as well as the dividends generated from my 60:40 asset allocation portfolio. I left my equities untouched, and my portfolio is now within a few percentage points of its all-time high. I expect more market volatility ahead, but as long as you maintain enough cash reserves, you can ride it out without too much anxiety.
This has nothing to do with watching the markets on a daily basis. It has to do with how do you know when you have enough and can retire without worrying if the market goes down.
I feel like we have enough now but if the market were to go down like it did in March, we would have sleepless nights. I guess that is my answer!