Your Worst Nightmare: Retiring Before a Market Crash

Ben Carlson looked at what every retiree's worst nightmare would look like under a range of stock market crash scenarios. Taking a hypothetical 60% stocks / 40% fixed income portfolio, assuming a steady annual withdrawal rate, Ben discusses what that might have been like, and what investors should take away from the exercise.

Josh Brown and Michael Batnick add their own two cents to the conversation. Let us know what you think in the comments below!

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[StudentCenterNY]

Josh's point at the end about the fact that we are now able to invest without large expenses is key. Even if returns are lower over the next 30 years than they were for the last 30 (which is likely the case), the fact that your investment costs are practically zero helps a lot. In the old days, just placing a stock trade was expensive.

[royjones]

Just live off the dividends and interest. If you can't live on that plus SS keep working. Adjust your consumption to your income not the other way around.

[jamesm.]

This is me commenting from 2021. I am in the process of splitting dividend low beta with Growth. Reevaluation flexibility are key. 2 years in cash/ tips.. Great post. What do I owe you?

[cyrilhughdonohoe]

I've always liked Nick Murray's idea of having two years of worth of living expenses saved. If you are before the required minimum distribution age you can live off the savings while your portfolio recovers. If you are taking RMDs, then you could invest your savings while the market is down in a brokerage account to boost your overall investment returns going forward in retirement.

[Felicidade]

what is this radio silence in this rather bearish week?

[chrisE]

Ray Dalio already solved this problem for pension funds around the world. It's called the All-Weather portfolio.

[charlespiche]

It would be nice if you let Ben finish a sentence sometimes.

[NavShay]

Why not sell the equities at high valuations and dollar cost average it back into market to reduce the risk?

[megazrd]

im big fan of 'animal spirits' podcast but... i should not watch the video. You looks so diffrent that i imagine form podcast :D