Retiring With Enough Liquidating Stocks and Moving to Cash- Part 2
Jan 6, 2026
A deep dive into the tumultuous market of two years ago reveals whether selling stocks was a wise move. Peter discusses investor fears spurred by market conditions and highlights the challenge of timing the market correctly. Using a hypothetical $100,000 investment, he contrasts returns from money markets versus staying in the S&P. Key insights on the risks of inflation and the emotional toll of drawdowns emphasize the importance of a long-term perspective. Ultimately, he advocates for dollar-cost averaging and staying invested.
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Reader Wanted To Move Fully To Cash
- In October 2023 a reader wanted to sell all stocks and move entirely to cash fearing a big crash.
- Peter Guidry recounts the reader's motivations and market warnings that prompted the request.
Decide Based On Your Time Horizon
- Ask yourself when you need the money before deciding to sell investments.
- Peter Guidry advises younger investors with long horizons not to sell purely out of fear of a correction.
Timing Requires Two Correct Calls
- Selling to move to cash requires two correct market calls: when to exit and when to reenter.
- Peter Guidry notes timing both decisions is easy in theory but extremely difficult in practice.