Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

Ben Carlson: What If You Retire At A Stock Market Peak?

FYI: Meet Sam.

Sam’s entire family has terrible luck when it comes to the timing of their retirement.

Sam’s great-grandparents retired at the end of 1928. Over the ensuing three years or so the stock market would drop close to 90% while the U.S. economy would contract nearly 30% in the Great Depression. In 1937, the stock market would be cut in half and a couple of years later World War II would commence.

Sam’s grandparents didn’t fare much better, retiring at the tail end of 1972. This was right before a brutal bear market which would see stocks cut in half from 1973 to 1974. The purchasing power of their portfolio would also be ravaged by inflation, which would run at a rate of 121% over the first 9 years of their retirement (more than 9.2%/year). From 1973 to 1981, the S&P 500 would lose 33% of its value in real terms
Regards,
Ted
https://awealthofcommonsense.com/2019/04/what-if-you-retire-at-a-stock-market-peak-2/
Sign In or Register to comment.