At whatever sizing is chosen, what that is doing is reducing the stock allocation of the investment portfolio, but with increased complexity by having separate buckets of assets.If someone has an emergency fund I would expect them to size it so that this very modest and temporary loss would not impact needed funds...
A reasonable emergency fund for a risk averse person does not return -13.93% in 2022 like VASIX did.
This is definitely not a good e-fund choice for the risk averse.
https://advisors.vanguard.com/investmen ... d#overview
Likewise, someone who uses LTTs for a bond allocation while holding a large cash position as an emergency fund is in just holding a shorter duration fixed income portfolio than the bond portfolio. The more general task is to manage portfolio liquidity. Having an emergency fund that holds cash is using a bucketing approach to meet that objective.
Statistics: Posted by Northern Flicker — Tue Oct 15, 2024 1:01 am