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One generation cannot control the wants of future generations, and if you're not worth a billion today or have no rational expectation for a billion to come your way in your lifetime, let alone no heirs to worry about or try to control, it's all a moot point.
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Back to the subject of this thread:
The Dow will eventually get back above 26K, in this lifetime. It may take awhile but it will happen at some point.
Let's not be excessively hasty. A well-compensated employee might be able to save $100K annually. If we assume 12% annual returns, which was actually conservative for the 1980s and 1990s, then that $100K per year, becomes $1B after 63 years... which isn't even 3 generations.
In the above example, we've ignored both inflation and pay-raises.
Even at a much more reasonable 9% annual rate of return, $1B is reached after 79 years... beyond the lifetime of one human investor, but not entirely ridiculous, if we presume a multi-generational compact to amass and store wealth.
Consider one more example: a very highly compensated employee, such as a corporate lawyer or a surgeon, who saves $300K annually, over a 40-year career. And let's assume a relatively reasonable 7%/year return.
By the time that said career concludes, the erstwhile employee has accumulated $60M... and then, stops contributing further. The portfolio perseveres, assuming zero withdrawals. It takes another 42 years - for a total of 82 years - to reach $1B.
The magic of compounding is indeed magical! We need three ingredients: (1) voracious savings, (2) good annual rate of return, and (3) fanatically zealous discipline to NEVER spend the money, passing 100% to one sole heir, who continues the tradition.
My portfolio went down $13,000 from yesterday to today... YIKES!!! I will go home today and have a few beers that should calm me down LMAO Well, at least I am still working, this would be unnerving if one was retired...
My portfolio went down $13,000 from yesterday to today... YIKES!!! I will go home today and have a few beers that should calm me down LMAO Well, at least I am still working, this would be unnerving if one was retired...
My portfolio went down $13,000 from yesterday to today... YIKES!!! I will go home today and have a few beers that should calm me down LMAO Well, at least I am still working, this would be unnerving if one was retired...
Those who have been in the market longer than 2 decades know markets go through cycles and dips. Those who follow experts like Peter Lynch and other well-respected titans in investing have been advised countless times that market corrections and crashes will occur, expect them, maintain a diversified portfolio and have some cash or equivalents to cover from a few months to a year or longer living expenses.
Those who choose to retire but don't have an adequate nest egg with an 89% or better chance of supporting them across any market condition that's occurred in the history of the stock market, are the ones who are at greater risk.
And to put this week in perspective, consider this week the net result of the "OMG YIKES EEK", netted to a whopping loss in the S&P of -0.7% and the YTD S&P is +12.3%. The Dow's net loss this week was -1.3% with a YTD of +9.32%.
Last edited by lottamoxie; 03-22-2019 at 04:56 PM..
CNBC had an article about a lot of boomers who were mostly equities close to retirement.. I guess the allure of the good market is hard to resist but can be risky..
My portfolio went down $13,000 from yesterday to today... YIKES!!! I will go home today and have a few beers that should calm me down LMAO Well, at least I am still working, this would be unnerving if one was retired...
We are retired and while it isn't unnerving to us, it sure is darn unpleasant. But it is all part of the game; interceptions and fumbles happen at times.
My portfolio went down $13,000 from yesterday to today... YIKES!!! I will go home today and have a few beers that should calm me down LMAO Well, at least I am still working, this would be unnerving if one was retired...
Only 6K down for me. We'll see what happens next week. Yup - I have a few more years before I retire. It's not like I'll be needing any of it anytime soon.
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I will go home today and have a few beers that should calm me down LMAO 
Well, at least I am still working, this would be unnerving if one was retired...
