Talk of The Villages Florida - View Single Post - We're in deep poop
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Old 03-30-2020, 07:41 AM
Heyitsrick Heyitsrick is offline
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Quote:
Originally Posted by biker1 View Post
Your portfolio is only down 30% if you are entirely in equities. At the typical ages of those in The Villages, being entirely in equities would not be a smart move unless you plan to leave it all to your heirs.
Using real numbers, a 30% hit on a $1,000,000 portfolio is a $300,000 loss from the highs. I don't know what "only" means in your dictionary, but that's very significant.

Subsequently, you'd need a 42.8572% gain from that hit to $700,000 to bring it back to $1,000,000.

Yes, obviously no one in retirement age should be all-in on equities to begin with.