I understand how being a retiree and living on your retirement savings at that time could have been a scary proposition, however assuming you had enough living expenses saved for a good 5-10 years, even a market drop of -40% or more doesn't "wipe out your savings". I mean your savings would have to be less than, say, $300,000 for two year of a recession to completely deflate your nest egg forever.
With this in mind, I'm trying to understand some quotes in articles like this one:
https://www.marketwatch.com/story/many- ... 2017-11-06
A fascinating story, but I want to highlight this quote:
I am having a hard time understanding how the recession could truly wipe out the savings of a couple like this. This just is not resolving for me. Could this be B.S.? Head of Product Dev at MCD (I assume that is the function of menu selection, improving the recipes, etc. for a place like McD) should be a multi-millionaire by retirement. Way beyond a few million. How could a 2-year downturn and a 40% drop in equity markets wipe this couple out? WTF?I talked to one couple, Barb and Chuck. He had been head of product development at McDonald’s MCD, +0.10% before he retired. He lost his nest egg in the 2008 crash and Barb did, too.
What am I missing? This bothers me because I can't aggressively defend against such scenarios for myself unless I fully understand what happened. Are we sufficiently defended against this eventuality by adhering to Boglehead practices?