Reply to What do people do when a serious downturn happens 5 years or so before retirement?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]If it’s really a market downturn five years from retirement, treat it as a buying opportunity.  Even the 2008 downturn recovered by 2013.  If it’s a downturn in your first year of retirement then you’re just out of luck.  But hopefully you ran a FireCalc Monte Carlo analysis to stress test against historical downturns.[/quote]

After the 1929 crash, S&P did not recover till 1954.
[/quote]
If you bought in 1930 you would have made big money within a few years.[/quote]

Yes if you frequently traded and knew when it would rebound

1930: The market actually surged in early 1930, recovering nearly half of its crash losses, leading many (including famous economists) to declare the crisis over. It then collapsed again.
• 1933–1937: There was a massive "New Deal" bounce where the market doubled in value, but it was still nowhere near its 1929 highs.
• 1937–1938: A secondary "recession within the Depression" caused another 50% drop, wiping out years of gains.[/quote]

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