The Money Mustache Community

Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Asgard01 on May 03, 2014, 03:18:33 PM

Title: The fear of portfolio failure or severe losses
Post by: Asgard01 on May 03, 2014, 03:18:33 PM

Hi all,

I was just wondering for those people who were FI before 2008, how did that financial crises in 2007/8 affect you. Did anyone go back to work or do some part time work, was there severe cutbacks from say 4% to 2% withdrawal or did you perhaps stick to your 3% withdrawal rate etc.

I am wondering how many people who have reached FI worry or are concerned with their portfolio loosing substantial value, despite having a very cautious setup etc. Are you still concerned? I am trying to build a healthy safety margin currently into my plans and after reading a book on semi retirement which listed many pitfalls and problems those with FI face, thought I would get some actual real experiences and thoughts from you all.

Chris

Title: Re: The fear of portfolio failure or severe losses
Post by: CarDude on May 03, 2014, 04:58:42 PM

I don't worry about it, but this is also why it's often a good idea to either focus on developing your self-sufficiency (growing food, repairing skills, etc) or your entrepreneurial end (side businesses, etc), even when retired...it can give you that peace of mind that you've got a backup plan if your main plan goes out the window.