Yes, I am referring to point when someone who probably only got a short time to live and has enough money not to work and do all the stuff they want to do.
In such a situation, your main concern would be not so much to grow your assets, as you already have enough to live on, but to just simply hold onto what you have got. Preservation is the key so you would probably go for risk free assets.
Long term the stock market normally goes higher. So your right if you have a 20 year horizon and are aiming to get to a point where your investment income covers expenses as soon as possible you are probably better off in equities.
the question then is whether to market time or just stay in for the long term. People often say it is very difficult to get out at the top and in at the bottom. They also say there are few good days on market and if you miss them miss out on a lot.
roger Montgomery says in a very good article “
Ten thousand dollars invested in the S&P500 on January 1, 1992 and reinvested annually, with all dividends, through to December 31, 2017 grew to $108,700 – an annual compounded return of 9.6 per cent. But missing just the ten best days resulted in the $10,000 growing to just $54,200. This is one of the reasons that professional investors implore others to invest for the long term and use the aphorism that time in the market is more important than ‘timing’ the market.”
https://rogermontgomery.com/part-1-stay-or-leave/
