The Motley Fool Discussion Boards

Previous Page

Retirement Discussions / Retired Fools


Subject:  Re: Early retirement Date:  5/6/2000  9:10 PM
Author:  telegraph Number:  3847 of 20599

Anyone needing a 10-12% return from the stock market for the next five years, for additional income to live on, is treading on dangerous territory, even if they aren't worried about 'volatility' and are willing to watch things everyday. Most folks will suggest that ANY money you have to depend upon, being there for the couple of years, should NOT be in the stock market. Look at 1973/4. Will you sell everything when the market drops 8% in one day. What will it do the next day? Rebound (causing you terrible loss as you try to sell on the way down), or go down even further (minimizing your substantial losses). Those retiring in 1972 saw their nest egg in the stock market drop by 50%. Rather than 10-12% return, they took an immediate 50% drop in value. If they had to sell some along the way, to live on, they would have been wiped out in a few years.
Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us