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Old 09-08-2012, 08:24 AM   #21
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there really are 2 ways ...

a less aggressive way which should result in lower overall gains is rebalance whenever markets are higher and your down on buckets 1 and 2.

the more aggressive way would be letting buckets run close to empty and allowing the stock bucket to grow untouched for 15 years.

thats a bit aggresseve for me taste. you can be 80 and almost 100% in equities.

the good thing is 15 years out odds are good you will be higher when you sell equities.,.
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Old 09-08-2012, 11:25 AM   #22
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Ric Edelman just slam Ray on his radio program. He highlighted the 3 problems: backtesting in general is flawed, bogus inflation rate (if you backtest, you have to actually use all the data, you can't pick and choose), and his current strategy is different from the strategy his backtested.

Backtesting is used all the time by those gold ads (if you had bought gold back at its low, today it would be worth...) so I understand the problem with it. But almost every financial academic study does it.

The basics of the strategy is good, have less volatile investments for the short term, so you can wait for the market to come back. But the non-traded REITS and annuities I'll do without.
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Old 09-08-2012, 11:46 AM   #23
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Quote:
Originally Posted by mathjak107 View Post
there really are 2 ways ...

a less aggressive way which should result in lower overall gains is rebalance whenever markets are higher and your down on buckets 1 and 2.

the more aggressive way would be letting buckets run close to empty and allowing the stock bucket to grow untouched for 15 years.

thats a bit aggresseve for me taste. you can be 80 and almost 100% in equities.

the good thing is 15 years out odds are good you will be higher when you sell equities.,.
Yup, I got that from our threads on the topic too. But you didn't see it described by Ray did you? Nor did you see anything from him like a specific methodology dealing with approach number 1, like how to determine when the market is up sufficiently to start refilling and how to much to pour in based on how much the market has risen did you? I understand that there are lots of possible answers but Ray never describes how to think about them nor does he give examples. I suspect he makes you pay for his services to find out and then leaves you with some vague sentiment amounting to "you have to determine your personal risk profile and then decide for yourself." Thanks a lot. At least standard AA/re-balancing approaches give you some specific examples to consider.
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Old 09-08-2012, 12:06 PM   #24
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like how to determine when the market is up sufficiently to start refilling and how to much to pour in based on how much the market has risen did you?
Since he recommends using non-traded REITs and annuities, which limit your ability to rebalance, it's not surprising he doesn't detail this. I think now would be an excellent time to rebalance IMOHO.
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Old 09-08-2012, 12:33 PM   #25
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Everything doesnt get rebalanced before the time frame is up.

All rebalancing is based on years of money,not performance.

The untraded reits typically have a 6-7 year time frame until they are liquidated.

The annuity acts as a pension and is always in plce unless you do a gic contract for a set amount of years
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