Zero growth options

[pb4uski]

They will be better off staying well diversified and just tilt their AA a bit to sectors/investments they believe will do better.

 

[CaliforniaMan]

If I were independently wealthy, this lifestyle would be far far from anything I would ever choose. It's hard to imagine someone who actually has the means choosing to live like this. Maybe that's my ER bent, but I'm very suspicious of people who claim to be financially very well off, then run themselves into the ground while making risky moves that endanger that supposed financial security.

It is indeed hard to imagine, but there are people like that. A person I know had to go back to work after loosing so much in real estate speculation in the Great Recession. Sold a company, made a lot of money, retired early, could have had a very easy life. But I think to him there were always so many others who had more, he felt he needed to keep running to catch up. Often those who have won in business think that since they are so smart they can beat the market too. Some are lucky, most are not. He built a mansion in a area with a lot of very wealthy people. I guess it was easy for him to feel poor in an area like that. He undoubtedly feels poorer now.

 

[Lsbcal]

There are a lot of smart people predicting low stock & bond returns going forward.

My guess is that it will be a lot further up before a fall. At least for stocks. I can imagine modest bond returns.

 

[Chuckanut]

Obviously, your friends are 100% right. Real estate only goes up. History proves that. [emoji33]