30/30/30/10 ...reduce cash since rates are zero
Posted: Wed Nov 28, 2012 2:56 am
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.)
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.)