re: How do I retire with money?

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Why don't you explain to the young man what could happen if we have a hyperinflationary event?

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Then stocks should be an excellent way to preserve value. A good example would be the German hyperinflation of the early 20's, when German stocks did this about as well as anything available at the time.

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Why don't you explain to the young man what could happen if we have a bout of deflation? Stagflation?

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Here bonds are probably as good an investment as any, at least you get a return. Of course, this is the opposite scenario.

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Why don't you explain to the young man what could happen if the stk mkts crash and remain at low levels for many years?

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If he's 25 this is a *good* thing and he should load up on stocks while they are cheap. On the other hand, this sucks if you're 65.

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Why don't you explain the benefits of bonds vs stocks?

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Bonds help provide some diversification to one's portfolio. A lot of people don't understand what diversification is and how it helps.

Basically, if you hold a number of assets that tend to move up and down more or less randomly, that is diversified. A basket of assets that move in sync with each other is not diversified. Stocks and bonds (roughly speaking) tend not to move together all that much.

Diversification does not protect you from risk. What it does is lower the risk required to get a similar return.

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Are you guys all stk salesmen?

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Not me - I'm an index fund guy.