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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