Hi All,
I've been lurking on the Forum for some time now and have a question regarding one of the recurring themes I've seen on the boards. Basically I keep hearing the statement that 100% equities will get "crushed" over time. I understand there is inherent risk involved, but if I own an equity index like VTSAX, how is it possible the money I invest will ever go to zero ? Wouldn't the stock market have to fall to zero in it's entirety, and in any case I would still own the worthless shares if it were to come back ? This is probably a very stupid question but I can't seem to work out the answer in my head. I appreciate any insight/input you may have.
Also, I would appreciate an azimuth check from the other members here. I am 29, my wife 35. As of this year we are all maxing out 401k's, IRA's and outside of that saving about 24K a year, which amounts to about a 55 percent savings rate for us. The only task we've yet to master is the investment of that other "24k" which is just sitting around doing nothing. I plan to never work another day past 40 as I will have a military retirement and can draw from the TSP at 54, so basically I only need enough cash to last 14 years, which amounts to about 750k, if I don't manage to pay the house off in that time-frame. Any advice you can provide would be a huge help. Thank you all so much and I seriously love this community of folks.