Asked on 05 May 2020
It seems like it was due to the Fed's sudden intervention this time round that prevented it from becoming worse. And the conservative portfolios were not spared as well, this impacted our short term goals which is meant to be allocated to a conservative portfolio. Investing should be long term but there are wedding and housing goals too. I cannot tell my other half to put those long term right
The 1% you're highlighting is occurrence above the 3rd standard deviation from mean. If markets didn't recover and tanked further we would be looking at a black swan event. An anomaly.
But on to your planning.
If you have short term goals like a wedding and a house, then you're using your robo advisor wrongly.
Segment your investment objectives. Long term monies should be kept separate from short term money.
You can only take significant risk on money not required for at least 10-30 years, but pretty much no risk whatsoever on money needed within 3 years.
It's not your robo advisors fault, they're just doing what you tell them to do. It was your mistake to lump both goals together on a higher risk portfolio.
Each objective needs different attention and risk allocation due to differing time horizons and requirements for immediate liquidity.
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