No. of Recommendations: 0
I still don't agree -- it conflicts with another well known rule of thumb "avoid attempting to time the market."

Actually, with this strategy, an investor reacts based on what's already happened. Timing the market is when one invests based on what they believe will happen in the future.

Taken from
market timing
Attempting to predict future market directions, usually by examining recent price and volume data or economic data, and investing based on those predictions.

This retirement strategy isn't based on predictions, but reacting to what the market has already done, then making a decision. Then repeating over and over. So, no rules of thumb violated here.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.