Retirement Digest: Investing in Market Drawdowns

Retirement Digest: Investing in Market Drawdowns

Nick Maggiulli recently posted the best article I’ve read on the topic of being a buyer during this stock market drawdown as he reframes where we’re at today and what this could mean over the next few years. Here is a quote I wanted to share:

So, if you think the market recovery will take:
* 1 year, then your expected annual return = 50%
* 2 years, then your expected annual return = 22%
* 3 years, then your expected annual return = 14%
* 4 years, then your expected annual return = 11%
* 5 years, then your expected annual return = 8%

Even if we assume it takes 5 years to recover, that would be 8% returns over the next half decade.  Where else can you get 8% right now? 

Nowhere.

If you read any post in this Retirement Digest, make it this one.


Other Recommended Reading:


RFG Article from Last Week:

Thanks for reading!
Ashby


This post is not advice. Please see additional disclaimers.

Join the Retirement Field Guide Newsletter

Subscribe below to get Ashby's list of the best retirement resources from around the web.

We won't send you spam. Ever. Unsubscribe at any time. Powered by ConvertKit
Comments are closed.