30/30/30/10 ...reduce cash since rates are zero

[murphy_p_t]

I didn't find much on adjustings the allocation by reducing cash to 10% or even 0%...and spreading the excess into LTT, gold, stock market. My plan is to have mantain plenty of cash for emergency living purposes regardless.

I did a quick calculation w/ Craig's data on crawlingroad...it seems doing this caused the annual returns to generally bump up a few percent over the last 10 years...a year or 2 where there was under-performance of the HBPP.

Especially considered that The Bernank has screwed rates to the floor, what are the pros/cons of such a strategy?

(I thought this was covered somewhere else, but I didn't find an old thread on it.)

[MediumTex]

I think you will probably see slightly higher returns and slightly higher volatility.

[Pointedstick]

What MT said, with the addition that you'll probably fare a little worse if rates start rising.