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Old 04-06-2020, 12:53 PM   #5
Slava
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Join Date: Dec 2006
Location: Calgary, Alberta
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Quote:
Originally Posted by RichieRich View Post
Geeeez I bet a lot of folks are having a hard time right now w.r.t. their potentially approaching (or receding) retirement. Those early retirees (say mid-50's) have taken a huge blow if they were expecting imminent retirement. Those just retired... wow hope they had their cash reserve topped up and didn't plan a marginally feasible plan. What kinds of concerns and actions are hearing Slava?
Yeah it's never a good start to a retirement if you just begin and then have a bear market/market crash like this immediately after. The sequence of returns really causes problems, whereas if you're sayin in your mid 50-'s and looking to retire at 60, you can likely weather this and be OK. It's really a question of when you were planning on taking withdrawals, what those withdrawals look like (how tenuous things were prior to this market issue) and what timeline you have left.

I can't give specific advice here, but I think that people should be looking at their situation at this point and ensuring that their asset allocations are where they should be. This might be a fairly quick, albeit severe recession, and the order for people should be immediate/short-term cash needs (or liquidity) and then your longer term investments, plans for future income after that. I realise that sounds like common sense, but there's a lot of advice floating around right now that says "people should do nothing" or "don't look at your statements" or similar ideas. I think that's reckless and dangerous. You need to know where you are, and you need to have a legitimate plan for how to deal with this and reach your goal. It might feel better psychologically to not look and just wait for a recovery. I just feel like this will lead to people missing opportunities and not taking appropriate actions for their situation.
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