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by marketgod 1941 days ago
[0] https://awealthofcommonsense.com/2014/02/worlds-worst-market...
1 comments

His math and sentiment is correct. In real life, if he tells Bob to invest all his investment saving in an index fund with less than 5 years before retirement (all his investment at this point will be 100% allocated to stocks), Ben should lose whatever license he holds.
Read the article again.

"Second, he allowed his investments to compound through the decades by never selling out of the market over his 40+ years of investing. He gave himself a really long runway."

I don't think you get my point, but that's OK. Ben's example is wrong because he's suggesting someone to hold 100% equity all the way up to the end, which is wrong in most cases.
"Obviously, this story was for illustrative purposes and I wouldn’t recommend a portfolio consisting of 100% in stocks of a single market in the S&P 500 unless you have an extremely high risk tolerance. Even then a more balanced portfolio in different global markets with a sound rebalancing policy makes much more sense."
I think you are being argumentative at this point.