Re:Poll: Why are people leaving their jobs?
by knappe on Friday January 14, 2022 @01:45PM
(#29938390)
This is something you can hedge against, which is known as a sequence risk [0]. There are investment vehicles with built in volatility buffers designed to avoid this https://paradigmlife.net/blog/episode/the-volatility-buffer-....
That 3 years of cash on hand would be better off in some kind of investment and if you're worried, supported by a volatility buffer.
Re:Poll: Why are people leaving their jobs?
by foobarian on Friday January 14, 2022 @02:34PM
(#29939220)
This illustrates why rich people are rich, and have an easier time getting richer. Even if they don't have time or aptitude to learn about this kind of thing, they have family or paid professionals to guide them.
One is guaranteed, one is not. Markets are volatile. I lived through 2001 and 2008 as a working stiff, that shit can drop on a dime.
Right now, I have no debts. House and vehicle are paid off and I have an "oh shit" account that's pretty good. I can sit here as a hermit for at least a year or two, three if I really hunkered down and pinched pennies. It's a good feeling; one less thing to worry about.
Now if I put all that money into the market and shit hit the fan, not only would I not be willing to sell stocks due to their price plummeting, I would still have a mortgage and car payment. I'd be in this situation for 6 months to a year. Not a great situation.
Ensure your freedom / ability to live first, then invest heavily, IMO.