Hi. I am just trying to get an estimate as to how long it took for a typical (60% stock/40% bond) portfolio to recover during the Great Recession.
I used Vanguard 500 Index Fund Admiral Class (MUTF:VFIAX) as a representative stock index fund. It looks like it reached a high around 10/07 at 143.9. The fund value did not reach that amount again until about 3/13 when at hit 144.4.
Does that mean that it took about 5 years and 5 months for the market to recover? And does that mean one should try to have about 5 1/2 years worth of retirement spending money in short term accounts so that you don't have to sell out of fund during an extended market down turn?
Does anyone keep this many years worth of retirement spending money in short term, relatively safe, investments?
I used Vanguard 500 Index Fund Admiral Class (MUTF:VFIAX) as a representative stock index fund. It looks like it reached a high around 10/07 at 143.9. The fund value did not reach that amount again until about 3/13 when at hit 144.4.
Does that mean that it took about 5 years and 5 months for the market to recover? And does that mean one should try to have about 5 1/2 years worth of retirement spending money in short term accounts so that you don't have to sell out of fund during an extended market down turn?
Does anyone keep this many years worth of retirement spending money in short term, relatively safe, investments?