April 30, 2016
Why many retirees will run out of money
For example, 9 percent thought it would be all right to withdraw 15 to 24 percent of their savings annually. Even with positive investment performance, that would almost certainly deplete a nest egg within a decade.
9 percent of these investors may have complete and utter faith in the Sears turnaround story.
Oh, sure. SHLD closed down 9% on Friday, is down 20% for the year, and is down 89% from its peak in 2007 (adjusted for dividends and splits). That's good news though! Why?
Return to the mean, baby. Return to the mean.
You'd feel downright silly only withdrawing 4% of your savings each year knowing that your heavily leveraged and undiversified Sears portfolio would shortly be returning to the mean! Sure thing! Can't lose!
Bad Mark. Bad. Bad. ;)
Our Cramer top ten list now goes to eleven!
ReplyDeleteCramer thinks SHLD is the next Berkshire Hathaway!
mab,
ReplyDeleteOh, my! Hahaha! Hahaha!!
Makes me think we can't even have a list any longer!!! Why?
The answer.