Early-retirement wannabe

Marine_life

I'm less concerned about market volatility unless it spills over to the real economy. My portfolio is based on income-generating shares so a market fall simply means my yields go up. Income is reinvested so it also means I'm getting good deals on that reinvested income. Every cloud etc.

itm2

Kit_Katt wrote: »

For the people that have now retired and the ones close to retirement following the journey what are they feeling about this years declining stock market?

I retired at the end of June 2013, at a time when my investments had just lost about 5% of their value. It was a nervous time but I took the view that these were long-term investments, and that a short-term dip (albeit a badly timed one) should not change my outlook. I had/have no regrets

agent69

I moved onto part time working earlier in the year and am hoping to keep it going until April (when hopefully there will be greater clarity on the effects of Brexit).


4% drop in the markets isn't a big issue, but if there is meltdown in April I might have to carry on working for a bit longer

bemorebitcoin

gadgetmind wrote: »

Bitcoin has fallen 30% in five days, so not a boat I'd fancy risking my life in.

Not wise to put all your money into bitcoin but as a hedge it is a a good call. 5% of your savings, maybe you lose, maybe you avoid a bit of a loss in the value of the pound, or maybe it increases 20x and you have doubled your savings.

ColdIron

bemorebitcoin wrote: »

or maybe it increases 20x and you have doubled your savings.

Come again?

Alexland

ColdIron wrote: »

Come again?

Indeed you would need the 5% to increase 21x (or an additional 20x) otherwise you would 'only' have 195%.

gfplux

I have been retired over 20 years and the stock market goes up and down.
A 4% drop has not stopped me looking to buy a new car. (Not one made in the UK)

Kit_Katt

Comforting to know- thanks for the feedback .

michaels

I have to remind myself that the 50k drop in my pension means I am getting more value for each pound I am now investing. Surely it is a good thing to buy shares when they are cheaper.

Alexland

michaels wrote: »

I have to remind myself that the 50k drop in my pension means I am getting more value for each pound I am now investing. Surely it is a good thing to buy shares when they are cheaper.

Yup and the dividends are also getting better value reinvestments too. We are down around £30k from this correction but our net worth is still around £60k higher than April (mostly our invested income and bonuses) so I have nothing to complain about and will continue to invest new money into the markets.

Markets were looking too frothy which would be damaging to medium term returns so I am convinced this (and the previous) correction have been a good thing for long term investors. I would actually be happy to see it drop a bit more next week.

Alex