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In reply to the discussion: So what happened with the DOW today −457.21 [View all]Blue_true
(31,261 posts)39. Again, it depends upon what a person has in retirement funds.
For the average American that hav less than $200,000 (many less than $100,000), 4% works out to $8,000 per year max, without any other money stream, that leaves a person in deep deep poverty, even in my area of Florida. But if a person has a nest egg of $1 million, 4% is $40,000, an income that is just below the median family income for my area (incomes range from nothing here to several million per year, very few people earn above $40,000 per year though).
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It's bad, but if you're in the market, you should know not to watch daily ups and downs
Bucky
May 2020
#5
Thanks for the graph. Here's S&P 500 from 1928 on a logarithmic scale for a different kind of view
progree
May 2020
#17
Actually with reinvested dividends it took S&P 500 16 years to recover from Great Depression
progree
May 2020
#31
You make sound points. The main issue is how quickly a person will need retirement money and how
Blue_true
May 2020
#35
Actually, I had in mind the people who need their retirement money, not well-off people
progree
May 2020
#38
If a person needs much more than 4%/year withdrawal, all simulations show they are screwed (will
progree
May 2020
#40
I struggle a lot with which view is the more distorted one - linear or logarithmic
progree
May 2020
#32
It's the logarithmic scale that allows dips, or growth, to look the same whatever the date
muriel_volestrangler
May 2020
#33
I think the peak to trough drop in the Dow index was 89%, meaning $100 became $11, or
progree
May 2020
#34
***FAUCI !!! *** I've been saying for nearly 3 weeks Trump and ManureChin have been lying about
uponit7771
May 2020
#12
It might be more about several of the early reopening states ticking up in cases?
herding cats
May 2020
#29
The market will remain volatile until the COVID numbers drop or a promising drug or vaccine drops
Algernon Moncrieff
May 2020
#20