The Motley Fool Discussion Boards

Previous Page

Politics & Current Events / Retire Early CampFIRE

URL:  https://boards.fool.com/fmo-wrote-because-of-its-volatility-the-stock-17668147.aspx

Subject:  Re: OT: KISS Date:  8/10/2002  3:49 PM
Author:  galeno Number:  73406 of 882347

FMO wrote:
Because of its volatility, the stock market is an absolutely horrid place to be during the accumulation stage. For someone desiring very early retirement, you either get lucky or you fail. I prefer to eliminate luck as a consideration to the greatest extent possible. Since the volatility of the equities markets can create extended period of low returns, an equity heavy approach in the short accumulation period allowed to early retirees, is a pure crapshoot. LBYM, diversification and the use of investment approaches that involve real estate are advised.

1. Because of the volatility of the stock market, that makes it the absolute BEST place to be during the accumulation phase and after too.

2. There is NO luck involved IF the FIRE wannabe is thinking long term. If you think short-term (like most on this board) then I guess you can talk about luck. And...you won't get to FIRE...at least not at a young age.

3. Serious FIRE wannabees would do best to AVOID real estate like the plague. RE is best treated as an EXPENSE by smart FIRE wannabes. RE can be used to diversify a large FIRE portfolio for those who need to have a "job" during FIRE.
Copyright 1996-2019 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us