My mistake, it should have been 12k of 100% VASIX (11693 final value) compared to 10k starting of t bills (10983 final value) then. A theoretical emergency would still be covered, and if one doesn’t come up you’re likely to have greater returns than cash. Results are sensitive to start and end dates.I think $12k instead of the default was the overfunding, which is slightly more than around $11.7k for a seventh month. The post mentions inflation a few times, uses an inflation-adjusted graph, and mentions "...if $10,000 was six months worth of expenses...", so I presume maintaining $10k after inflation was the intent. It appears that start date determines if inflation-adjusted $10k was or was not maintained. Trying to maintain a real value mainly using low nominal marketable bond rates and some stocks simply amounts to a debatable strategy in the moment, and potentially some adopters could have ended up underperforming by the attempt at outperforming.The life strategy fund is trailing t bills in real terms, yet the six months worth of expenses have been preserved which is the real goal.
Statistics: Posted by SellLow — Wed Jul 10, 2024 3:43 am — Replies 84 — Views 8077
