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Old 02-22-2021, 12:45 PM
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bdub bdub is offline
Join Date: Jun 2011
Posts: 3,668

Originally Posted by Ken07AOVette View Post

In 2007/08 3 friends of mine lost hundreds of thousands of dollars they had invested in mutuals. 2 guys and their dad. Their dad is 70 years old and forced to work until he dies because due to no fault of his own, all his savings investments disappeared overnight. It was his choice to not leave it in savings though.
Sounds like your friends panicked near the bottom of the market and sold out. They would likely be ahead hundreds of thousands by now if they would of had some one with some experience holding their hand through the correction. Sad deal.

Stocks are volatile, all asset classes are volatile. People got to have the stomach for some volatility. Holding nothing but cash or cash like instruments/GIC's is a sure way to end up on the short end of the stick. Your wasting your most valuable commodity, TIME. You need to get your money working for you in something, equities, real estate, bonds, commodities and preferably all of these in some degree at certain times, for diversification. The biggest risk is not taking any risk, inflation will crush your cash over time.

Historical returns from US large and small cap stocks is around 11-12%, international equities and emerging markets 11%, REITS 12%, High grade bonds 6%, high yield bonds 8%. This is over the last 35+ years. But you have to be prepared for drawdowns. Depending on the particular equity market, stocks were down huge in 2008. REITS and high yield also got slaughtered. But 2009 was a banner year for folks who didn't panic or added during the drawdown.

To the op, a 50% weighting in crypto is way to high. I think 1-2% would be more than plenty. JMO
There are some who can live without wild things, and some who cannot. Aldo Leopold
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