Robert Kessler – Retired Equity Risk Avoidance
Now retired, he recently spoke about thinking and investing long term now that he is retired. My takeaway is he thinks that avoiding a big downturn in equities at this stage of his life is critical because he may not have the 20 years to wait for the statistical never lost money in equities to come true. I feel like I’m not at that point where a big downturn would not turnaround before I need any of my equities’ money. I have enough chicken money to cover my needs for several years. He was a Treasury Bond manager, so maybe that influences his opinion. Do you think a retired person with a long retirement horizon expectation should practice extra equities risk avoidance?
Terry Says
I think that all depends on the amount of money you have (just enough to get by for the rest of your life, or more than enough and hoping to leave some to your kids!).
And it depends on your personal risk tolerance.
Having “chicken money” on the sidelines (read this: https://www.terrysavage.com/chicken-money-update-2/)
can give you enough peace of mind to ride out the volatility of the stock market — even in ultra-volatile times that we are in now.
