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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I'm recently retired and check my investments once a year, though not sure why. I can only imagine the behavioral mistakes people are making by paying attention to the ups and downs if the market and all of cadet bonespurs nonsense. [/quote]

Good for you, completely ignoring your finances. [/quote]

Actually, according to data from schwab and fidelity, accounts held by dead people (as in frozen accounts that haven't gone to the beneficiary yet) often outperform actively traded accounts. A set it and forget it strategy can work very well. [/quote]

[b]I don't doubt the right person with access to the right information can do very well trading for themselves. And clearly there are such people.[b]

I work full time, I can't spend 40 hours a week studying stocks and making bets. I have most of my portfolio in S&P with some minor diversification and just leave it alone while adding to it aggressively. And it's paid off spectuacularly. There have been ups and downs but it's still paid off spectacularly. [/quote]

What you are saying is technically true, but what you are saying is mostly BS.  You got lucky by investing in a portfolio that isn't necessarily unreasonable, but isn't very diversified and posted great returns over the last 15 years.[/quote]

It was Warren Buffet who cued me on this strategy. He said in an interview that most people should invest in the S&P and leave it alone. I followed it and once again it's paid off spectacularly, by my standards. I'm pretty risk averse but in this one area I can't fault not diversifying too much.

Anyway, I'm responding to someone who simultaneously said "technically true and "mostly BS." It can't be both, can it? The proof is in the pudding. And the S&P has been phenomenal across the last 20 years. It's had major downturns and I fully expect at least 1 or 2 more in the next 20 years but also expect to ride it out. Part of my retirement strategy is to have about $200k in cash that I will use for living expenses and replenish from the withdrawals on an ongoing basis, but it also allows me to minimize withdrawals for up to two years if the market isn't in a good place and there's been a crash. [/quote]

I was referring to you basically implying that you can beat the market. You have a lot of confidence due to recency bias that may or may not bite you in the ass. That seems like a lot of money to have sitting in cash, and quite frankly, will offer very little protection from sequence of return risk. Bear markets historically have lasted up to something like 13 years. [/quote]

The average annualized S&P growth since its creation is 10%. I am not saying I am beating the market. I am following the market!

The 200k in living expenses, at the time of retirement, is living expenses. I will spend that money in a year, just as I spend my salary right now. If the market is good, I simply replenish that pile with money from the market on a rolling basis. If the market is bad, I delay withdrawing from the market. It's my strategy. FYI the 2008 crash took about 5 years to recover. [/quote]

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