Reply to Regret Retiring Given Inflation/Market Woes?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I retired 7 years ago at 53.  So far I've been through two major market adjustments.  The first was two years ago, when Covid first hit and the market dropped more than 30 percent.  The second is now.

Market fluctuations are part of life.  If you don't think you can stomach them, you're not ready to retire.

You have to think and look long term.  Yes, things suck right now -- big time.  But I'm still well, well ahead of where I was when I retired despite two major market fluctuations.  My net worth was $4.8 million when I retired in 2015, and as of today it's $7.02 million.  Yes, six months ago it was $8 million, meaning on paper I've lost $1 million this year.  But I'm staying the course, and not regretting my decision to retire one iota. [/quote]

+1. You need to be comfortable with the equity portion of your portfolio dropping as much as 50%. If that makes you nervous, then you had too much at risk.[/quote]

The problem with taking hedge fund manager advice on what is coming for the economy is that your are asking the 1% to forecast how the 99% are going to behave and what a crash in consumer spending will do to our consumer based economy

fact is the 1% is soooo far removed from the reality of most American's financial decisions that this is how we get a Fed that claims " we failed to anticipate the effect of inflation on consumer spending"

WORSE is that these out of touch 1% Fed Reserve types think that raising interest rates will curb inflation because " in theory it does"

WRONG again: prices are up because GAS/ Oil cost more and Covid quagmired supply chain of key contributing parts- making their cost higher and higher....

When costs go up- REAL Americans- the other 349.99 Million of us- spend less. Why ???? because gas for our cars and food on our table costs more

raising Interest rates isn't going to make us buy less milk, eggs, and ground beef or chicken, raising interest rates ISN'T going to make us drive less to work

It will just make our CC bills higher and HIGHER and so we will spend less.... economic recession

I retired in June of 2021. I told my " broker " I was not comfortable putting my savings in stocks because I had never felt a VIBE in the country so insecure since the 1973 Oil Embargo and that I feared Inflation was coming. [b]My Merrill Lynch broker[/b] responded by asking me , " what do you mean by inflation.... ?" seemingly to test if I - a middle class working stiff- actually knew what the term meant.

So, I responded with my recall of what happened to price of food in 1973/74, gas prices and 14% interest rates to buy a home- stagflation

He said, " well, our forecasters just don't see that on the horizon... these supply chain issues are very limited to China and only in a few commodities... and this will be quickly resolved"

FLASH FORWARD 1 Year and here we are....

Why did the Fed " fail to anticipate" ? Because the only people they really talk to, understand and respect are the top 1% of earners and THAT is NOT who / what drives the economy is a consumer based country like ours[/quote]

Did you fire that kid?[/quote]

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