That means you are still going to lose some money.
More importantly, it means if you need access to the money now because you are retiring or retired, you are screwed.
#30 | POSTED BY SYCOPHANT AT 2020-03-12 03:57 PM | FLAG: Many actually do not 'spend' their 401K in retirement as they chose to structure for cash flow off it. You are correct if they plan to withdraw immediately off their investments they will take a bath.
You seem to be negative on investing so I recommend you just put you monies into a bank account, CDs, Treasury notes, etc., and then you will sleep better with little worry. As for my wife and I we will continue to invest in the markets for our future as our plan is to attain cash flow fro out investments.
Just a note: Risk/Reward Ratio - What Is the Risk/Reward Ratio?
The risk/reward ratio marks the prospective reward an investor can earn, for every dollar he or she risks on an investment. Many investors use risk/reward ratios to compare the expected returns of an investment with the amount of risk they must undertake to earn these returns. Consider the following example: an investment with a risk-reward ratio of 1:7 suggests that an investor is willing to risk $1, for the prospect of earning $7. Alternatively, a risk/reward ratio of 1:3 signals that an investor should expect to invest $1, for the prospect of earning $3 on his investment.
No risk, no reward - little risk, little reward. Everyone's risk tolerance is different so each should ascertain what percent of their investment for the future should be. For some, NONE, for others 10%, 25%, etc. Personally, we have a high risk tolerance with the majority in the market, MLPs, REITs and so forth and only [approx] 10-12% in cash.