Another thing to think about is you seem to want to have/hold $1 million in portfolio balance, but if you have a fund that holds 70% in stocks and stocks fall by 20% (bear market?) then you'd likely be looking at (around) a decline of 14% (.70 x .20). Sure you've got the bonds to maybe soften the blow, but only 30%. Even if bonds earn 5% a year that'd contribute 1.5% (.30 x .05) to offset that 14% decline which means your portfolio would still fall by 12.5%. Which means on a million dollar portfolio, you'd see a loss of around $125,000. Here's an example of that when stocks fell -20% in 2018. Your $1 million was only worth $916,000.My 401k passed the $1million mark for the first time in December and I have become quite fond of seeing that number when I view my account.
As of today the balance is $1,004,918.90. With the recent potential for destabilization and after reading about a potential stock market crash I let my anxiety get the best of me
How would you feel about that?
What if the stock market fell 30% (like it did in 2020 between 2/23/20 and 3/23/20)? Your $1 million would only be worth $770,126.
not trying to scare you, just trying to say that 70% in stocks is aggressive and losses will show up in your portfolio even if you increase your bonds by 2%.
So be prepared, and mostly avoid the noise. Turn off the television. Let today's events be a lesson to not get sucked into the fray. The futures markets were down 600 points last night. And today by the end of the day, the market ended down an amount that on any other day when there wasn't such drama in the world, would not have garnered as much as a mention.
what do you think about that?
Statistics: Posted by arcticpineapplecorp. — Mon Feb 03, 2025 8:35 pm