I agree that the market has been overpriced and high risk for the past 3-5 years. I cashed out 3 years ago and have sat on 90% cash in our retirement savings as we are just hitting retirement age and I don’t have the stomach to lose money in the stock market. I guess 2001 did that to me.
I know that this is not sustainable, and I’ve lost out on market gains in the past 2-3 years, but I sleep well and our Financial Analyst (an hourly paid CPA who does not sell anything but his time and expertise) tells us that we are OK - but should really be looking at higher returns going forward.
Hence, we’ve put the most we can (10K each year for the past few years) into I-Series bonds currently paying 7.2% and we’ve kept DW’s TIAA-CREF invested in a targeted retirement date fund. That represents 10% of our retirement savings.
I’ve been looking forward to getting back in with some of our retirement cash (maybe 30-40% max) but have been waiting for the 50% drop that may have started this past couple of weeks. I’m in no rush to re-invest, I’ll sit back patiently (as I have been doing for the past couple of years) to get in at what I hope to be a much more reasonable purchase point.
I also started to follow Saul’s board a few months ago, and I’m also amused with the rah-rah-rah of the regulars there. I did take $10K of play money and put it down on UPST back in October and you know what that looks like now!! No more playing with the roulette wheel for me.
'38Packard