accountingsucks
Recycles dryer sheets
- Joined
- Jan 28, 2006
- Messages
- 346
We all know due to sequence of returns risk that retiring on the eve of say the dot.com crash or in 1964 prior to the 10 year bear market would have been terrible times to retire.
Conversely though, when is the best time to retire? As a 42 year old I am aspiring to retire at 50. If the market had a crash today that lasted three years that would put me at 45 - all the while I would be adding to my portfolio. Presumably at some point we would rebound as generally speaking we should be at all time highs more often than not.
So I guess my question is what is the inverse to the sequence of returns risk? What periods in the past would have been the BEST time to retire?
Conversely though, when is the best time to retire? As a 42 year old I am aspiring to retire at 50. If the market had a crash today that lasted three years that would put me at 45 - all the while I would be adding to my portfolio. Presumably at some point we would rebound as generally speaking we should be at all time highs more often than not.
So I guess my question is what is the inverse to the sequence of returns risk? What periods in the past would have been the BEST time to retire?