Klondike5 wrote:f*** you wrote:
Oh my god! The stock market fluctuates? F*ck! Everyone panic!
The point (well, other than the one on your head) is that yes the markets fluctuate, sometimes losing over 50% of their value, and it feels like one of those times may be approaching. Do you have an actual opinion on that? Or are you like Flagpole, who thinks losing 50% of your liquid assets accumulated over a lifetime and invested in the market is not a bad thing or no big deal?
I am happy for you that you are happy with what you did, but it was risky for you to do that. No one...that is NO ONE can time the market.
Losing 50% IS no big deal as long as you are still 10+ years away from retirement and you don't do something stupid like sell at the wrong time.
I lost 39% of my portfolio value in 2008, but by 2011, no counting contributions, my value had recovered.
What did I do as the stock market dropped like a stone? In invested more. I continued investing as always so that when the market dropped below 7,000, I was a buyer. I was a buyer at 6500 and 6700 and 7000 and 8000 and 9000 and all the way up to now. I have made HUGE gains from those buys.
I would LOVE to see the market drop to 7000 again, but I seriously doubt that it will.
When you are in retirement, you MUST have other sources of income other than stocks, so that when there's a big drop in stocks, you can draw from those other resources...Social Security, bonds, CDs, or cash. I'm not a fan of CDs currently, but if you retire with ZERO debt (as you should), then you could either have about 40-50% in bonds, OR go all stocks except for 2-3 years of expenses in CDs or cash that you can use if the market really tanks. It's not an investment...it's just insurance against the market really tanking.
The ONLY time you should worry about a big stock market crash is if you are in retirement or about to retire and you have all your investments in stocks with no other sources of income expected. Just don't put yourself in that situation and you'll be ok.
It's silly to WORRY about the stock market. Position yourself well, and you have nothing to worry about.