fredissy

Is Buy-and-Hold Dead? Hardly

Buy and Hold has been discredited time and time again. Imagine the couple who had a million dollars in a diversified stock portfolio at the beginning of year 2000, and that person wanted to retire and collect income at the end of 2000. They were not going to buy stocks any more. They just wanted to retire with an income from their life savings.
I am not going to do the math here. (though I have done it, and it is SCARY!!) As you do the math consider the taxes they have to pay each year as they sell some stock. Consider also the destruction of the value of their portfolio year after year by this country's inflation policy. Consider, as you do this, the REAL inflation, not the lies we are told. Finally, consider the two major hits to the general market we have now experienced in the period of 8 years. Can you spell.....ruined? I do have a solution to this......and, it is not Buy And Hope!!