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Investing/Strategies / Retirement Investing
|Subject: Re: Asset Allocation||Date: 4/6/2006 8:33 PM|
|Author: ziggy29||Number: 50953 of 75625|
>> Well, maybe the people on this board are just too stupid or, by now, too senile, to learn anything about investing profitably. Certainly, this board has provided no decent advice on making money in the market. <<
See, this goes back to what I've said before.
Not everyone is trying to *maximize* their expected nest egg come time to retire.
Some of us are trying to make just enough to likely make it, consistent with reducing the chance of falling short. In other words, the goal may be to figure out what you think you need, and *minimizing* the chances of not getting there. If all you need is 6-8% per year to get there, why take big risks?
And not everyone has a decadent, opulent lifestyle. Some retirees are perfectly happy making $40,000 a year. My parents haven't made much more than that in retirement; between pensions, Social Security, interest on savings and the RMD from Dad's IRAs, they took in about $45,000 last year. (I know this because Dad died in November and I did the taxes for my mom this year.) But they had simple tastes and they did just fine. They would have been fine on $30-35K. They were not struggling in the least; they had everything they needed and most of what they wanted.
I'm not saying people should set the bar that low. But if people have simple tastes and live simply, they don't NEED to take excessive risks to be able to bring in $100K a year.
You seem to think everyone's financial plan should be to do whatever they can to maximize potential wealth. But many people are risk-averse enough that all they want to do is minimize the chance of falling short, and I think suggesting active trading and/or market-timing for them is a mistake if they only need a rate of return that the market historically has been able to provide. Even if your suggestions would maximize their wealth in the average case (which I question), it adds more risk of losing principal.
Different people. Differenct circumstances. Different goals. Most of us recognize that and say "it depends." You, on the other hand, do little more than push market timing on everyone as a one-size-fits-all.
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