24601NoMore
Thinks s/he gets paid by the post
- Joined
- Dec 8, 2015
- Messages
- 1,166
Not sure what your point is. My statement "From history, five years of patience usually gets it back." is accurate.
The point I was trying to make is that there seems to be too much expectation nowadays that markets "usually" come back in <= 5 years based on recent experience, when history shows multiple periods where that is not the case. That appears to lead in some/many cases to people taking on too much equity risk in their later years (or in general overall), when they may not have time for the value of the equity portion of their portfolio to recover. Or, worse - be forced to pull from equities in a protracted down market environment in those later years, which could easily curtail quality of life and ability to spend as one may need/want.
Net, OP does raise a very good point about perhaps not needing a high % of equity exposure when your FI covers a big portion (or all) of your core expenses. I've always had that same approach and it's served us well - maybe we've missed out on some upside and even "lost" some to inflation, but it sure helps us sleep much easier at night also.
Last edited: