I don't know
much about investing in the stock market.
Not exact matches
Most of my
investing experience has been
in the Canadian
markets, so I can admit I don't know
much about selecting blue - chip American
stocks.
Even if you owned 90 % of all
stocks, but not the top 10 %, you would have ended up with
about 1/3 as
much at the end of the 29 year period (compared to
investing in the broad
market).
As Joe will note
in his article, I'm an advocate of
much more caution
about stock investing than seems to prevail today (thanks,
in my opinion, to Wall Street
marketing), and I hold what many would consider heretical views on equity
investing.
They acquire an emerging
markets mutual fund here and a gold ETF there, plus a few
stocks they read
about in the paper, and before you know it, they have no idea what they're
invested in or how
much they're paying
in fees.
Or you could keep your withdrawal the same and choose to
invest more conservatively so you don't have to fret as
much about setbacks
in the
stock market.
Well, a recent study by David Blanchett, head of retirement research at Morningstar, found that by being flexible
about how
much you draw each year from your retirement portfolio — say, scaling back withdrawals when the
market is faring poorly and spending more when
stock prices are surging — you may be able to get by while
investing less
in an immediate annuity than you otherwise would.
Now that I have learned
much more
about stock market investing, have learned my own risk tolerance, and have made a few
investing mistakes along the way, I view this downturn
in a new light.