Flagpole wrote:
naughtybynature wrote:March 2009 was the time to jump in 100% long. Not sure about now.
Easy to say now. Did I say that in March 2009? Yep. Was I a soothsayer? Nope. I say you should be in long at ALL TIMES, unless you are within 5 years of retirement and you have enough that if invested conservatively (bonds and CDs) you would be fine, and even then, it is a good idea to still be at least 50-60% in stocks. I won't invest in CDs unless they get back to 12% like the did in the 80s.
If we go back to March 2009, lots of people (here an elsewhere) were saying to get completely out of stocks and that the Dow would drop to 1500 or less...even all the way to ZERO. Well, that's crazy talk. When you hear that, that's when it's time to stay in and put more in if you can.
Funny thing is that many people (who don't know anything) are still calling this market a DOWN market, and they say it has been poorly performing for the last few years. That's BS. 2008 was bad. 2009 was GREAT. 2010 was GREAT. 2011 was marginal. 2012 so far has been GREAT again. Unemployment keeps dropping (as well as fewer filing for unemployment benefits), manufacturing is STILL kicking butt and has been for over 2 and a half years, signs are everywhere that the economy is picking up (and it's doing so SLOWLY which is AWESOME if you are more than 10 years away from retirement). Keep putting money in and never stop.
1) Emergency fund of 3-6 months in place
2) Debt free but for the house.
3) 15% OR MORE into retirement accounts made up mostly of good growth stock mutual funds...add some bonds after age 35.
4) Pay off house before retiring so that you are 100% debt free AND own your home before you retire.
5) Retire and have fun.
You really nailed it. Fear is the reason most people are not rich. I am not a psychic but I was telling everyone to buy in early 2009 and they thought I was nuts. Some of the greatest companies in history being sold at garage sale prices. If it's the end of the world, bonds and cash are also worthless anyway.