Reply to What is your net worth if you are 55 years of age

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]How do you guys deal with the fact that we are currently in the biggest stock market bubble in US history?  The stock market dropped *90%* from 1929-1932 and didn't recover for 25 years.  Like if you are planning to retire because you have $4 million, but then that becomes $900,000 in a couple of years, how are you anticipating or planning to adjust in that case?[/quote]

You're being dramatic.  Such a massive drop is never going to happen.  Ever.[/quote]

While there certainly will be a correction (several) or a crash in our future the stock market isn't set up as it was in 1929. We certainly could have another crash a la 2008, but even then there are differences in how everything works. I would guess biggest drop would be about 25%. Maybe 30%. But even those numbers for people who have retired early on something like 4M could be in for a severe wake up call. [/quote]

30% correction? We just turned 50 with $4M plus paid off home and prepaid college for one child. If there is a 30% drop we will be in trouble. Our biggest expense would be health. I think from what I calculated no more than $2-3k a month for two adults and a child (in 4th grade) in Nova. We were hoping for 6% ROI on $2M of that which is brokerage accounts. Kept $6k for modest. travel [/quote]

A 30% drop is high probability IMHO.  The market dropped 32% in march 2020 and quickly recovered thanks to the fiscal intervention and the underlying strength of the economy.  If things were different, this could have taken years to recover.  Always plan for a 40% drop and be happy if it doesn't materialize.[/quote]

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