Re:Financial Independence / Retire Early Calculator
by rebelos on Saturday January 01, 2022 @04:40PM
(#29763122)
And that's very relevant when you're talking about FIRE. You shouldn't have to liquidate any substantial part of your portfolio at one time. Once you're no longer on your own income, you should plan ahead with a 1-2 year runway (deciding the exact amount is an optimization problem that can be run against historical data) to hedge against having to sell off too much at a loss during a downturn.
The only broad market index fund owners that were hurt by 2008 were those that sold at low prices. The people that hung on a couple years were greatly rewarded.