Retiring with $1 million sounds like a milestone worth celebrating. Retiring with $1 million on the exact day the stock market drops 20% sounds more like the universe has a strange sense of humor.
The important thing involves what happens next. A market plunge can shrink an investment portfolio on paper, but retirees still need groceries, housing, insurance, utilities, and the occasional dinner that does not come from the pantry. The goal should not involve predicting the next market move. It should involve creating enough flexibility that a bad market day does not dictate the next 20 years.
