Quote: (03-27-2013 02:06 AM)worldwidetraveler Wrote:
So, what is a solid plan again? Not purchasing stuff and then doing what with your money? Purchase stocks and hope they don't dive when they are ready to retire?
Remember that a guy is not going to be in high-growth mode for the last few years before retirement. His portfolio will switch to something more stable.
To miss the last few years of a rising market is no big deal if he's already been compounding assets from age 25 to age 60.
So the state of the stock market on retirement day won't make a big difference over the long term, provided he's switched to a more defensive profile.
It's similar to dollar-cost averaging on the way in. Slightly in advance of retirement, you are going to transition to a different mix to meet drawdown requirements. You don't do this in one hit, you do it over time.