> how do index funds work in this case, do they just rebalance themselvs and then prey you can withstand the drawdown

I'm not sure. That sounds plausible enough. If so, that's similar to systematically selling the bottom, because you'd be getting rebalanced away from whichever stocks fell the most.

that's pretty insane, i get not panic selling and, after btc, that concept is pretty well ingrained in me, but if a person was already retired and living off that income, they're screwed no? like wham, -70%

how do index funds work in this case, do they just rebalance themselvs and then prey you can withstand the drawdown

stack_harder

I think that's good advice. My mom lost about 70% of her retirement savings during the GFC, but a few years later that value had recovered.

It's terrible for people currently trying to live off their savings or those who can't postpone retirement. For everyone else, it ends up not really mattering too much (unless they panic sell the bottom).

AskSN

trading

econ

What happens to 401ks if there is an ai stock bubble?

I think that's good advice. My mom lost about 70% of her retirement savings during the GFC, but a few years later that value had recovered.

It's terrible for people currently trying to live off their savings or those who can't postpone retirement. For everyone else, it ends up not really mattering too much (unless they panic sell the bottom).