Gen X retirement at risk as dot-com era lessons reappear in today’s markets

Gen X near-retirees face heightened risk from market crashes timed to withdrawal needs, with many having been heavily invested in S&P 500 funds after years of strong gains. Experts urge a diversified “war chest” of cash, short-term bonds, and other high-quality assets to cover early retirement expenses, plus glide-path strategies and gradual rebalancing to avoid selling during downturns. They also caution about concentration risk in the S&P 500 as AI-driven themes increasingly dominate index weights, which echoes the dot-com era’s vulnerabilities.