Retirement Planning With The 'Tism - Part 7: You Call That A Downside? I'll Show You Downside
Aka - Why You Need To Learn To Hedge You Over Confident Basterd
“Just keep Buying…Buy When There Is Blood In The Streets…”
There is a general overconfidence in personal finance circles about the US stock market always bouncing back. Overconfidence can be dangerous.
If you have been following the 'Retirement Planning with the ‘Tism’ series, a common theme is “hey look at this rule that people keep repeating based on something that happened over the last 40 years if you back test it….wellll what if the next 40 years is different?”
Retirement with the ‘Tism #1 - Why 10% vs 20% Savings Rules Aren’t Enough
Retirement with the ‘Tism #2 - Why the 4% Rule Sets You Up To MisFire Retire
Retirement with the ‘Tism #3 - Why the “Average” S&P Return is Wrong
Retirement with the ‘Tism #5 - What If Your Retirement Allocation Plan Sucks
Retirement with the ‘Tism #6 - Why Your Diversification Isn’t Going To Help You
We will continue that theme today as we talk about downsides.
[Note - You should be saving & investing…Probably a lot more than you are.
We are pointing out the flaws in common advice to encourage you to save & invest MORE.
You should grow income and save MORE until you hit true financial freedom and never have to worry about money.
We present this information so you go into it ‘eyes wide open’. You see the risk and the potential downside and you can be prepared for it. We don’t want you to be a “LEAN FIRE I’ll retire at 40 and live on $20k a year because I hit my 4% number person”. If anything goes slightly negative, those dudes are rekt. We want to try to guarantee your success, as much as anything in life can be guaranteed.]