JAH wrote: ↑Mon Jun 10, 2024 11:05 pm
I don’t anticipate needing to touch my investments for at least 10 years, probably 15.
The question is if the market drops, will you be able to avoid panic selling and locking in the losses? If not, then you need to be looking at less risky options than stocks. For you it sounds like you might want to go 5-10 years full steam in stocks, then towards the last 5 years start to think about having a larger % of non-stocks. However, it's not impossible that you could be looking at 50% or more losses within 10 years if you were extremely unlucky with timing, so if you want to avoid that, you might want to keep a larger fixed income allocation from now already, even though it'll result in probably lower growth.
JAH wrote: ↑Mon Jun 10, 2024 11:05 pm
I don’t anticipate needing to touch my investments for at least 10 years, probably 15.
The question is if the market drops, will you be able to avoid panic selling and locking in the losses? If not, then you need to be looking at less risky options than stocks. For you it sounds like you might want to go 5-10 years full steam in stocks, then towards the last 5 years start to think about having a larger % of non-stocks. However, it's not impossible that you could be looking at 50% or more losses within 10 years if you were extremely unlucky with timing, so if you want to avoid that, you might want to keep a larger fixed income allocation from now already, even though it'll result in probably lower growth.
Thank you for the input, and apologies for the slow reply. I’m confident that psychologically I’m not the “panic seller” type, and if everything goes to plan in my life then even if my investments are down after 15 years I expect to be able to make ends meet without touching them. But I’m aware that the future is full of unknowns, and if and when I find that a significant portion (over 50%?) of my overall wealth is in stocks the I’ll certainly do as you suggest and look to reallocate some of that to more stable options.
