This is good point. Many traders/investors put stop loss at around 5%-10%. 10% is also tolerable in the sense that a 10% loss can be mostly recovered by a later 10% gain.
Very difficult to live off only dividends without touching some principal.
S&P 500 gives ~ 2% dividend. To get $200k annual income, need $10M portfolio. Difficult to accumulate $10M even if one has maxed out 401k for 30+ years
Actually you need an 11% gain to recover from a 10% loss. Just makes market timing that much more risky.
âŚif you need 200k a year with the house hopefully paid off, the kids on their own and no work related expenses. You also need not live close to job centers where everything costs more.
There are millions living on virtually nothing but their SS and not all of them are miserable. Median household income in the US is about 60k a year. Double that and you should be fine. Dividends ought to rise with inflation and then some. I think folk who believe they need 200k a year really need to find themselves a hobby they can be passionate about.
Depends on where one is living. For those living in RBA, where houses cost $2.5M +, and people are buying in their 40s or even 50s, chances are high that the house may not be paid off by retirement (barring a stock âlotteryâ like working at a high level in a company that goes IPO - but that is a rarity, hence I call it a lottery. Most people will just earn a salary, and maybe get a little stock or bonus each year at best).
In such a scenario, probably the retiree couple will need $300k per year to sustain. $100k per annum may come from Pensions/SS, and another $200k per annum from investment portfolio. This would require a portfolio of $5M, from which 4% can be withdrawn annually. I think 4% annual withdrawal is considered fairly conservative and not too risky in the long term.
So leave the BA when you retire. Why stay there? The only thing lousing that up would be a prolonged downturn in the BA housing market.
Grandma used to live âover the river and through the woods.â There was a reason.
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The reason to stay is that if one has lived and worked in a place for long time, it is always nicer to be able to retire there and stay in the familiar home and city.
But if thatâs not possible and there is substantial loan balance at retirement, then I guess those in the RBA can up and move to East Bay towns like Fremont, Pleasanton or Livermore, or to South San Jose or Morgan Hill. If even that is not affordable, then Tracy or Hollister, and if not then Austin or Phoenix. Finally, cheapest option is to retire abroad in Mexico, Central America or South East Asian countries. Couple of million dollars can go far there, esp with SS thrown in
Or if a person refinances homes every three years, the principal actually never gets a chance to get paid off.
No US medical system in those countries, unfortunately.
A lot of people retire in Florida
Mendocino County is very nice - parts of it anyway - and a lot cheaper than the Bay Area. No reason to go where itâs hot.
I lived in the Bay Area for 50 years. From my point of view it morphed into something very unfamiliar.
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Changing city to live post retirement becomes a big challenge for someone who has immigrated from foreign country into USA in the adulthood. The person has to relearn new place in the retirement years, when new relations are difficult to made. I have spent time in various parts of the USA and familiar with cultures in urban centers of west coast, east cost, south, and in the ranches and the corn farms of the Midwest.
But for many in Bay area, America ceases to exist 100 miles east of San Jose.
Well stated. This can probably be said about NYC or London as well. These large, cosmopolitan global cities are diverse microcosms where people from all parts of the world live side-by-side, and hence they are different from the surrounding countryside or states even few hundred miles away
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Thought you are a long term buy n hold? Should be do nothing. Sure you know how to trade? Even in a correction, there would be up and down, I say is volatile market, best for good day traders (I am not one of those)⌠JC said he has expected that and had raised some cash and is waiting for the right BTFD moment, to those who didnât sell, he said is still not too late, apparently he is correct given today price action, STFR.
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Unless you plan to leave inheritance, selling principal is ok. For those years where indices gained a lot, can sell a few years worth of expenses. Donât forget your portfolio size would be increasing too.
Also, why need to own a house? Why not rent? Proceeds from a $2.5M SFH can pay for rents till your last day + more 
Why burden yourself with property tax + insurance + maintenance/ repairs of a house?
Your consideration seems to include passing down inheritance.
5-10% have different reference points. Day and swing traders feed on this type of volatility. The traders in your context are position traders⌠those that have holding duration of from a few months to a year.
SG has far better medical facilities than most US cities.
Better to own a house as one ages. Otherwise in 70s or 80s, being a renter at the mercy of a landlord is not easy. Owning property helps a retiree be more stable.
Thereâs a lot of truth to that. But the flip side is that the anonymity one has in urban areas doesnât exist as much in rural areas. This not only makes them safer but makes it easier to get to know people. It is a new challenge; one needs to become involved in some civic activities to meet people. If youâre religious that helps; churches tend to be nexuses (nexi?) of social activity. But even if youâre atheist there are always things going on; organizations in need of volunteers, etc. It does take time but eventually you realize you live in a much more close-knit community. And there are other benefits. You get on a first name basis with your FedEx and UPS delivery guys (who often go the extra mile for you in rural areas). Ditto with the Post Office. And people not only like and trust the cops but also know many of the on a first name basis. So yes, itâs work and a new challenge but thatâs part of the fun of retirement. Keeps you from ossifying.
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Coming from you is 
Why are you talking as if you understand?
Should have said explicitly itâs sarcasm. Was expecting you know how to read context.
Anyway I thought you said today is supposed to be black Monday? What happened?
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You play game, I play along.
You have reading comprehension issue. Let me quote you the conversationâŚ
Panda saidâŚ
I saidâŚ
For a trader with a short position, is red today.
Ok. So panda is again saying garbage and you broadcast his nonsense here?