>>>>"The fact that it (Reischauer's example of risk)is extreme, not normal or not representative doesn't change the fact that it will occur for millions of people".
>From: Andre Dermant
>>>>I must admit, this statement befuddles me. Is he saying that millions of people will invest 100% of their savings in 100% stocks, without any regard to safer investments? Hardly. I am saying that the discourse on risk would be more productive if we use examples that are more typical of investments used for 401(k) and IRA's.
Then present your own scenario. Tell us what instruments people should invest in at what times of their lives. Then maybe we can get somebody to plug it in and show not only the cohort risk in your scheme but also how that risk management affects returns overall.
