Quote:
Originally Posted by Mr. Pink
Over the past ten years I have heard so many times about so many people who were "wiped out" by '08, they lost everything, they'll never retire, and all that has been used as a poor excuse by writers with an agenda to go after Wall Street (not that they don't deserve criticism) and, especially, the entire 401k and IRA industry. I think, wait, what, how did that happen? Of course, we're listening to people whine that, as usual for most, made awful financial decisions, the top of the list was to sell low after buying high. Happens all the time. Probably today.
|
mostly agree. I know someone who screamed and yelled to make her husband sell shares in 2008, only to regret it later.
That said, if you are in the withdrawing phase, then a 50% dip in equities is going to hurt a bit (though still shouldn't wipe out one's nest egg). assume a 700k bond 300k stock portfolio, with a drawing rate of 4%, one is now at 850k (or possibly 800k, if the bond market takes a tumble as well). The safe withdrawing rate of 4% used to mean 40k/year; now it's 32k/year.