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If you have $1M (for example, *beyond* your financial retirement number,) and want the best rate of return you can get with the least risk of loss, you can put up to 66%-ish of it into the S&P unhedged long position, with a 33% liquid reserve.

Heh. You should read some of the investing board that I follow. People talk about cash reserves in the single digit percentages. And "just enough so that the bank doesn't charge me the low-balance fee".
And "Had to tie myself to the mast to force myself to stay above 10% bonds."

But they don't just drop their money into stocks and ignore it. They do active management of some sort, and reduce their stock exposure in bad times. Is it work? Yes. But very numerative work. Very few jobs net you a 6-digit income (in the form of increased net worth) for just a few hours work a month. Excluding cooking blue meth, of course. ;-)

... brain fart...
Can we say that here? I've had posts FA'ed for less than that.

If $1M represents your financial retirement target, you cannot afford to lose even a dime until you've earned that... and even then, you can only afford to lose what you possess beyond that balance
That is simply not true.

And if it *was* true, it would mean that you cannot afford to go into an IUL, either. An IUL pays no return if the index gain is less than 0%, but the fees get charged no matter what.
The example you posted doesn't get to $1M until the 44'th year. At which time she is 69 years old.

The cash value at year 38 is $650,000. If the market (index) has a loss for the next 2 years, CV won't increase beyond that. But the fees still get taken out, so the account loses more than a few dimes.
And then what? Now it won't get to $1M until she is 71.

I'd love to be a fly on the wall when THAT discussion goes down. "Susan, good news. We're going to put you into an account that will never lose a single time when the market goes down. And you get to retire on your 71'st birthday."
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