The strategy of holding 1-3 years of expenditures in very liquid assets (i.e. money market/short-term bond) and the balance in stocks and bonds is not new. What seems to be a twist to me is the concept of not rebalancing between the three pools of money for 7 years.
Has anyone critically studied this approach and critiqued it? On the surface it seems reasonable. But is it any better than yearly rebalancing? Has anyone done a comparison?
http://www.raylucia.com/igsbase/igst...=41&SnavID=137
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Planned FIRE Summer 2011
Disclaimer: I make no warranty or guarantee about the accuracy or completeness of this information. I am not a financial planner, my comments only represent my opinion.
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