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That’s just it. “Buy & Hold” no longer works. Even Wall Street has admitted this now.
For example, if you had hit retirement age in 2000, and then suffered 40% -50% or more losses, as many did, you would still be unable to retire today.
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Well that all depends. By hold I don't mean you hold the same asset class the entire time. As an investor moves toward retirement, they would change their portfolio holdings to reflect that, move from growth, into more income funds, hold more bonds, less stock, lessen their international/aggressive funds a bit..
I don't think an investor who was at a 50/50 stock/bond portfolio would've fared all that bad in 2000. Bonds were quite something from 00-03. That's why I mentioned those Target Retirement Funds (I know vanguard offers them, sure the others do too), those are a great way to diversify away the unsystematic risk of the market. No?