Both are illiquid, meaning you can't sell a portion of them to help rebalance
your portfolio after a market crash.
Seniors are now living longer, so high minimum withdrawal rates increase the risk of outliving their nest eggs — particularly when they are forced to make large withdrawals from
portfolios after a market crash such as occurred in 2008.
Not exact matches
As an aside, Grantham also notes that no stock
market crash has occurred until
after average investors have been dragged into the party's frenzied last hours, too late to make much money but just in time to have their
portfolios gutted (again).
As I discussed in the mindful bucket plan for «old» investors in Article 8.4, one of the best ways to guard your
portfolio early in the withdrawal phase is to have a bucket of cash handy to invest
after market crashes.
Cash for «buying opportunities» — where cash is invested
after severe stock
market crashes to help the
portfolio value grow back more quickly.
Modern
Portfolio Theory is declared dead
after every
market crash, and all stock pickers, almost by definition, believe
markets are not really efficient.
My finance
portfolio got transformed
after meeting Vipin, even
after passing through 2 significant
market crashes and recession phases, it withstood well and kept paying a handsome return.