If you haven't reflexively
jettisoned stocks from your retirement portfolio in the face of the market's recent wild swings, congrats.
Take on more risk than you can psychologically and emotionally handle, and you may end up
jettisoning stocks when things get bad, locking in losses.
For example, answer the 11 questions in Vanguard's free risk tolerance - asset allocation questionnaire and you'll get a recommended blend of stocks and bonds based on, among other things, what size loss you feel you could handle without
jettisoning stocks and how long you intend to invest your money.
Not exact matches
Some pros may argue that
jettisoning foreign
stocks makes no sense, especially since we live in such a global world.
Knowing that you'll be collecting that monthly income regardless of what's going on in the market may provide some peace of mind that will allow you to feel more comfortable about owning
stocks, and possibly make you less prone to get flustered and
jettison them when the market goes haywire.