Stock Market Loses and Rertirement Benefits

July 8, 2022 | Wuli

[Born in 1950]

Understood.

[Drago]

Like The Fed is currently doing? “Triage economics”!! ;-)

[Republican in occupied CA]

Of course there are exceptions; if you or I had his expertise, informational resources, and ability to take a loss it would be quite different. But the average person trying to pick stocks or time the market does NOT do as well as just dollar-cost averaging into a market index fund. I’ve known a few people with deep expertise and connections who do well buying individual stocks and selling them at the right time; I also know a few people who shoot par or under, or run sub 5 minute miles; darned stupid to count on doing so for most people, though. On the other hand, just dollar-cost averaging into a fund that tracks the DJIA or S&P500 is going to do pretty well over enough time.

[aMorePerfectUnion]

Agree. Most people refuse to invest the time to be educated.

For them, *they* are the risk. Not the investment.

This leaves:

Hiring an expert,,or
Accepting average returns and the full risk of bear markets by using index funds or ETFs

[Republican in occupied CA]

I will take ‘average’ returns for the market, myself. Although I have also always had (fee based) financial advisors. It’s very hard to beat an index fund over 20-30 years; I have more chance of shooting in the low 60’s or my fat, 60 year old a$$ slam dunking a basketball. Over the course of a year or three, sure; playing the game on paper I’ve beaten the market plenty of times; averaged out over decades, not so hot.

[aMorePerfectUnion]

Over the course of a year or three, sure; playing the game on paper I’ve beaten the market plenty of times; averaged out over decades, not so hot.

Just two shorts:

1. I did beat the market over decades professionally on behalf of clients and my own family.

2. Beating the market is like saying you want a plane that flies faster than the wind. The vast majority of people would prioritize: safely arriving at their goal, timeliness that is acceptable, comfort.

[Republican in occupied CA]

Good points, well written.