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The problem with all the retirement calculators is that they don't account for extreme drawdowns. You need to account for at least a few years where your saving
by WheelsAtLarge 5y ago
The problem with all the retirement calculators is that they don't account for extreme drawdowns. You need to account for at least a few years where your savings give you a negative return.
In 2008 I dealt with a guy that had to come out of retirement because he would have run out of money if he continued to draw from his savings. Lucky for him he was relatively young and was able to find a job. What would have happened if he was in his 80's?
- trompetenaccoun 5y agoIn your 80s you shouldn't be in volatile investments anymore. Personally I don't get the obsession with "retiring". What's wrong with working a bit here and there? As long as one has a large enough cushion there shouldn't be any pressure. If you invest smart you will have more than enough by the time you turn 60 or so.
- kleer001 5y agoI'm a big fan of the doing what you love till you die, or at least aren't able to anymore. My heroes in that vein are those archetypal ripped 100 year old Japanese men chopping wood and fetching water.