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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.
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