It used to be that you were supposed to use your experience from the 2008 stock market drop to help understand your true risk tolerance. Well, now we have a more recent reference point in the 2020 stock market drop. Allan Roth reminds us that thanks to the unprecedented recovery, we have
Remember that the purpose of money is to give you choices in life. I’ve seen many people take unnecessary risks with their money and have to either go back to work or drastically cut back on their lifestyle. So use this second chance the market gave you to assess how much risk you want to take with your financial freedom. Let me repeat — don’t blow this second chance.
I’m still struggling a bit with this as it’s often hard to separate if you’re doing something because you have learned something new about yourself and/or permanently changed your investment philosophy, or are you just responding to what happened recently? I certainly don’t know what is happening next, but I am definitely nervous.
If you are near retirement, it is always a good idea to check if you’ve
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