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Post by minnesotapaintlady on May 15, 2024 14:49:11 GMT -5
This is where I'm at too. If we get a repeat of 2000 or 2008 in 2028 I would be screwed...at least temporarily. I was thinking this morning that it would STILL be scary to retire if the market was down 40% though, even if I had 2-3 years worth of cash. I wonder if I could pull the trigger if my account went from 1.2 million to 700K overnight even if I had a couple years worth of cash?  I think if it happened AFTER I retired, I'd deal, but if I was still working I might stick around a while longer. Who knows.
I go back and forth on moving 50% of my money out of the market before retirement. That's kind of tricky though...I feel like I could be missing out on a lot of gains. I also have to time it all so that I am moving it when the market is up, and it is so up and down... I don't really want to move it all at one time either and have to pay taxes on all those capital gains in one year. Ideally, maybe I move 250K to cash over the the next 5yrs, have $250K in a target fund (or something pretty stable) and keep $600K in stocks. Ugh...IDK! Is your retirement savings all in taxable accounts? |
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movingforward
Junior Associate
Joined: Sept 15, 2011 12:48:31 GMT -5
Posts: 8,403
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Post by movingforward on May 15, 2024 15:34:44 GMT -5
I go back and forth on moving 50% of my money out of the market before retirement. That's kind of tricky though...I feel like I could be missing out on a lot of gains. I also have to time it all so that I am moving it when the market is up, and it is so up and down... I don't really want to move it all at one time either and have to pay taxes on all those capital gains in one year. Ideally, maybe I move 250K to cash over the the next 5yrs, have $250K in a target fund (or something pretty stable) and keep $600K in stocks. Ugh...IDK! Is your retirement savings all in taxable accounts? 1/2 of my money is in a taxable account. I work for a small company that does not have a 401K, but puts 7% of my salary into a SEP-IRA; therefore, my personal contributions are limited to the IRA max. For that reason a lot of my savings gets filtered into a taxable account. At first I didn't like this but now I am really happy. It gives me a lot of flexibility. I can use my taxable account to retire early and leave my IRA in stocks. |
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