Are you transferring your investments to bonds, etc that produce income or are you selling some of your capital? If you are selling capital are you not taking a big risk in a market turn?
Most people on this thread seem to be retiring when they have 2 mil in the market, and they need about 100K a year to live on. That's 5% of what they have, and they are getting at least a 5 times better return that that in the market. I am, personally, much better off than that, so my risk is even less. The key thing is that most of us really don't need very much, by our standards, to live on.
I am simply following the same investments I had in the past, and selling enough stock to cover my income needs. I will pull out about one mil this spring and leave it in cash in my 401, drawing interest. I am basically pulling this off the table, as far as a stock investment, for insurance purposes, in case of a 1 to 3 year downturn in the market.
This nonsense, put out by "Retirement Planners", that you should suddenly put your money in Bonds and income stocks, is just that, nonsense!
I made my money by investing in hi-growth techs, I will continue to do so, and I am not worried about running out of money.
I hit my first goal last June, My second goal last December, and I see no reason why I can't double that this year. If we have a crash, and I don't double, or even have less, so what? I don't need it to live on right now.
If you take people like Uncle Frank, Merlin, and myself, and project us out 3 or 4 years, we could live like Kings, if we wanted to. And we are far from the richest people on this thread.
I know that I never thought I would have it this good, and I think Frank and Mike would agree with me. A Market Crash, at its worse, would be about 50%, and we could all easily survive the two to three years it would take to come back. |
