[0x6862]

You increase your defensive assets (bonds, term deposits, annuities etc.) as you become more risk adverse (closer to retirement or other change in circumstances). So when a 90% crash occurs that takes 10 years to recover you’re either still earning, or you can draw down on your defensive assets, letting your stocks recover

[gshdg]

Have you even seen the returns on bonds and cash equivalents lately?

[AstralStorm]

Defensive assets such as fully owning a place to live and means to travel, you mean? Or perhaps tools of the trade?

Bonds are not defensive enough. The about only way to lose a place to live you actually own is to live in a warzone or get very deep in debt...

The old adage is to not gamble your life on being able to pay a debt. This is rather hard in the USA due to completely broken economics of medicine, education and real estate, but in other places, much more available.