Question on drawdowns
Posted: Mon Jan 28, 2019 8:42 pm
I have a question on drawdowns. I see a lot of concern about drawdowns. Pardon my ignorance but unless the drawdown happens in the first year or so then is it as much of a concern?
I started doing a Desert Portfolio about 3-4 years ago. I am averaging about 4.5% a year, much better than the return on a savings account or Treasury bills. So at this point, even if a drawdown of 5-7% were to occur next month and I were to have to withdraw some funds at that tine, I would still be ahead of the alternate safe route.
Am I looking at this the wrong way?
I started doing a Desert Portfolio about 3-4 years ago. I am averaging about 4.5% a year, much better than the return on a savings account or Treasury bills. So at this point, even if a drawdown of 5-7% were to occur next month and I were to have to withdraw some funds at that tine, I would still be ahead of the alternate safe route.
Am I looking at this the wrong way?