It's just that when you are retired, I think that takes nerves of steel. After all, it might be the difference of going back to work or not. Or perhaps they have so much money, that losing a lot of it ..well it just doesn't matter. This brings to mind a thread on another board about Indexed Universal Life policies. One proponent was aghast that anyone would voluntarily invest in S&P500 B&H instead of an IUL, when the S&P subjects you to a occasional 50% loss and the IUL stays steady with no loss ever. She used the same "nerves of steel" phrase.When it was pointed out to her that the S&P portfolio dropped from $700K to $350K whereas the IUL stayed steady at $128K, she still didn't get it.IMHO it's readily possible to have a $2M portfolio when you retire after a working lifetime. With that size a portfolio, yeah, it's pretty easy to glide over the bumps.They must always believe in the eventual market recovery.Pull up a max-time chart of the DJIA or the S&P500. Can you spot *any* dip that didn't recover? Me neither.
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