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This is why recessions can be good for the young and employed. If the price of eggs drops 50% once you're retired, then you might be in a lot of trouble.
by aqme28 7y ago
This is why recessions can be good for the young and employed.
If the price of eggs drops 50% once you're retired, then you might be in a lot of trouble.
- MrMember 7y agoIf you're still invested in something that can lose 50% of its value when you're retired, you should rethink your investments.
- throw0101a 7y agoYou're not wrong, but it's a matter of balancing risk, which is the point of having an allocation towards equities (stocks) and fixed income (bonds). Recoveries have generally take up to 2-3 years, so if you have that much of your portfolio in cash and GICs, you can weather a downturn without having to touch your equities: * https://www.myownadvisor.ca/cash-wedge-opening-investment-taps/ https://www.myownadvisor.ca/cash-wedge-opening-investment-ta... One suggestion, which is not popular, is to take a portion of your retirement savings and buy an annuity: enough to cover your day-to-day expenses. This way, regardless of what your invested portfolio is doing, food and shelter (rent/property taxes) are covered. You would consider the annuity as part of your fixed-income ("bond") portion of your portfolio.