As to money market funds, I remember around 5%, but my internet searches have shown around 6%+. Remember that professional money managers traded during the year so their returns would not necessarily have been the same as the S&P 500 or the Dow. I remember tallying up things that year and compared my results to mutual funds that I was tracking or using. Many hedge funds, which was another category, were disastrous because of leverage and the ravages of portfolio insurance. However, I do not remember all of that 33 years later. So you can take it as hearsay, except for the psychic pain of being in "cash" while the market went up. That was real. Also when the market drops 20% (actually more intraday) by 4 PM on a given day, you can bet that margin calls have forced a lot of liquidation. However, again, I don't care to reproduce the details of 1987. Based on a search, S&P was up around 5%+ for the year, so I would not have beaten it by much. And that is the point, you would think that being out of the market during the heavy speculation of 1987 to avoid the bad period at the end would make one feel safer. However, TROMO (The reality of missing out) during the first 9 months completely negated that, at least for me. Investor psychology can work that way.
Regarding other approaches after retirement, that depends on the particular person's need for cash at that time, one's risk aversion (ability to withstand the psychic pain and momentary reduction of assets during a big downturn), the expectation of one's lifespan, one's confidence (hubris) in investing. I have my own preferences and I cannot say that they are any better than anyone else's. Blended funds would probably have lower risk over a decade or more and lower returns than 100% stocks (especially true over 20 years). However, withdrawal/distribution rates and strategies during retirement would definitely affect the longevity of assets. I believe that a lot of websites have asset expectation calculators that allow one to test various withdrawal strategies.
Hope that this helps. Remember I an not making recommendations, just giving some opinions to provoke thought.
Tex
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Regarding other approaches after retirement, that depends on the particular person's need for cash at that time, one's risk aversion (ability to withstand the psychic pain and momentary reduction of assets during a big downturn), the expectation of one's lifespan, one's confidence (hubris) in investing. I have my own preferences and I cannot say that they are any better than anyone else's. Blended funds would probably have lower risk over a decade or more and lower returns than 100% stocks (especially true over 20 years). However, withdrawal/distribution rates and strategies during retirement would definitely affect the longevity of assets. I believe that a lot of websites have asset expectation calculators that allow one to test various withdrawal strategies.
Hope that this helps. Remember I an not making recommendations, just giving some opinions to provoke thought.
Tex
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