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How? By selling the assets?

If not, then they won't be 'liquid reserves' during a drawdown, because the value they lose during that drawdown won't be available for withdrawal. If so, then you run into the issue of potentially selling invested assets during a drawdown (even a small one) - which is specifically what the reserves are supposed to protect against. So, it seems like implementing this strategy could work against the goal that the strategy is supposed be accomplishing.


Yes, I believe so. Dave might need to clarify, but I believe that he means of each dollar gained in the S&P fund, 33% automatically goes to the "safety bucket" and the other 66% remains invested.
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