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Sunday, February 17, 2013 - 10:30 AM

Retirement investing is different - MarketWatch

I like his comment ( a very nice sober contrarian reminder):

"At a time like today, when your friends are boasting about their gains and stock prices are at five-year highs, maybe it's time to exercise some discipline. Rebalance your portfolio. Take some profits off the table. Keep a reasonable allocation to stocks, of course, but do a reality check on whether your equity exposure is in line with your risk tolerance. If not, maybe you should reduce your downside risk.

Sure, the market may go higher, perhaps much higher. And you won't be a hero at the next ****tail party. But retirement isn't a time for heroics; it's a time for discipline. Eventually, valuations will return to more reasonable levels and your discipline will be rewarded.

In the meantime, you'll keep on track with your financial plan and sleep a lot better."
51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,427
1. Tuesday, February 26, 2013 - 6:20 AM
Retirement investing is an entirely different animal A bear market can damage your retirement. Think of it: those 50% decreases in shares we've seen twice in the last several years require a 100% come returning just to make it returning to even. But if you're taking out investment to invest in your retirement, you're growing your failures and you're probably going to need even more than a 100% come returning to get returning to normal. That's a fairly high order. Profile failures and frequent distributions are like oil on fire: they can cause to a volitile manner in your net worth and, more intense yet, and a reduced retirement way of life. The mathematical can be diabolical, and so can your loss of rest.
harreymartinharreymartin9 posts since
Feb 26, 2013
Rep Points: 10