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[quote=Anonymous]Yes, all my long term investments are in portfolios that would be labelled aggressive.

Although I can understand why you are scared, I don't agree its a "ballsy" thing to do. "Aggressive" means that it can be volatile on a year-to-year basis. But its nearly a mathematical certainty that over a long enough time horizon, you will have more money in an "aggressive" portfolio.

Here is an experiment you can do if you want to calm yourself down:

In one container, put two $5 bills. This is your "conservative" investment pool.

In a second container, put in one $1 bill and one $20 bill. This is your "aggressive" investment pool.

Now figure out how many years you have until retirement. Let's say it is 30.

Reach into the "aggressive" container and pull out a bill. Write the value down. Put the bill back in, and repeated 29 times. Take the average of your 29 pulls.

Note that after the first few pulls, there's a chance your average will be below $5, which means you would have made a bad investment by putting the money in an aggressive portfolio if you were to pull it after only a few years.

But the average after 20 pulls and after 30 pulls will be very similar, and both will be higher than $5, showing that the aggressive option both has a higher average return and is not really so volatile at all.[/quote]

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