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Recession?

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Recession? Empty Recession?

Post by TruthSeeker Thu Feb 11, 2016 9:24 pm

When you are younger, and have 100K invested in stocks.

When you are older, and have $1M invested in stocks.

A correction of 20% means totally different.

$20K vs. $200K loss.

One just started working, and another about to end.

Losing $135.6K in 2016 does not feel good, within 40 days.

Its a number? So be it.

TruthSeeker

Posts : 1508
Join date : 2012-08-18

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Post by smArtha Fri Feb 12, 2016 11:23 am

The one who is about to end working, should he be invested in a portfolio of similar Risk Profile as that of the one who just started working?

IMO, Principal & Inflation protection should be the primary investment motivation for one who is closer to retirement. Growth, if any, should be secondary. Not that I know of such investment options.. may be Propa can elaborate.

smArtha

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Join date : 2013-07-29

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Post by TruthSeeker Tue Feb 23, 2016 12:49 am

Your points are valid.

My point was that 1% loss or gain, means different to different portfolios.

As they teach in Statistics, always ask - 1% of what?

That changes over time.

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