> I see lots of times when people lost their life or retirement savings at an age it was inconvenient to do so.
It is very true that it can be very very difficult for someone to absorb a drop in the market when they need that cash, like the case you mentioned.
I also assume that there are many people who have been bitten by this.
However, I have never seen data to suggest that statistically it is worse to be in the market because most people are likely to be hit by a huge drop that wipes out all their retirement savings and so they become destitute. I’m sure there are cases like that, but it is extreme and I would bet a minority of cases.
Most people follow the advice of gradually shifting your portfolio to debt and away from equities as you age, to reduce this risk.
It is very true that it can be very very difficult for someone to absorb a drop in the market when they need that cash, like the case you mentioned.
I also assume that there are many people who have been bitten by this.
However, I have never seen data to suggest that statistically it is worse to be in the market because most people are likely to be hit by a huge drop that wipes out all their retirement savings and so they become destitute. I’m sure there are cases like that, but it is extreme and I would bet a minority of cases.
Most people follow the advice of gradually shifting your portfolio to debt and away from equities as you age, to reduce this risk.