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Originally posted by pavulon
I'm "only" 42. I hate seeing my retirement lose ground...especially in big chunks after a nice run...seems like I should have been smart enough to see it coming...like I feel one coming now....but then it's "when to get back in?"
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Nobody can answer this question. There are people who get pretty good at timing, studying various indicators...then the market throws a curve ball. It all depends on your tolerance of risk...and how much you wish to place in equities and how much in bonds. Then the risk varies in those categories...it's a semi complicated study.
VERY few people outperform the market by trading in a few stocks. The more they trade, the less likely they are to beat the total market or S&P 500 indexes...Less than 5% of fund managers beat the market index in any given year. And the names in that 5% also change. Last year's whiz kid can become this year's dunce...
You might check out a target retirement account. Vanguard offers a good one. Since the investors with Vanguard actually own Vanguard, the fees are low. Basically, with a target retirement account, you tell them your age, your hoped for retirement date, and they asset allocate for you. Less equities, and more bonds as you get closer to retirement. Just feed it every month...and tune out the noise! It's a "no brainer" account. Wish I'd done that...
I'll confess...I consider John Bogle, the founder of Vanguard, to be a genius in the field of investing. Nobody has done more to help the small investor...