50
On Retirement Savings
(sh.itjust.works)
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My savings into index funds has seen an average growth of 9% a year for the past three years. 11% since the start of this year. Granted I jumped in at the bottom of the corona dip.
Yeah, and you'll lose a shitload when the next crisis pops off in a few years, taking a few more years to recover that loss. The 401k management firms only ever seem to rebalance quarterly or semi annually, so there's no way to react to those downturns in time to mitigate.
I got hit by 9/11, 2008, and Covid, plus I've seen my SS benefits reduced a couple times.
React? You're not supposed to react, that's how you lose money. When the next crisis hits it just means I get more for the same price.
You know, that's what they say, and it makes sense. You can't play the market. But I'm not saying play the market. I'm saying that when crises come up, the indexes should rebalance before those crises flush our savings, rather than 3 months later.
Send to me that's what the rich people with big portfolios seem to do. The market tanks, they all move somewhere safer.
Meanwhile, us chumps absorb the losses.
I don't even know what that means. Market crashes don't flush anyone's savings. You only lose money if you start selling when they're going down. You don't. You just hold and wait untill it comes back up again. It has always came back up again no matter how deep it dips.
When you hear stories about people losing their savings during market crashes it's either people who got nervous watching the value of their investments going down and they started selling at a loss or they were invested into individual companies that went bankrupt.