Quote:
Originally Posted by alnorth
Since I don't pick stocks (I'm in 11 mutual funds, never mind picking stocks, I also have no idea which sector or which fund will win in a given year) I don't think I really need luck. I'm not trying to hit a home run, and I'm not going to strike out.
So far, my cumulative annual return is just 4.5%/year. Not terrific since you'd normally hope for 8% or so in stocks, but I did start in 2006. Year to date, after everyone freaked out and bailed, I made 12.5%.
I'm also not earning ~1% like I probably would, if even that much, if I went to cash.
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And I had lost more than 40% of my total value since 2008 and with the market so volatile and likely to crash again, I cashed out.
I'd have rather have paid taxes on that money and still have it, as opposed to losing it and never seeing it return. And I'm talking hundreds of thousands, not a few thousand.
Again, good luck.