The following thread was from probably one of the more well educated members of the forum, yet the poster's suggestions were often rather debatable. They suggested investing emergency funds in marketable assets, based on recent historical outcomes, instead of using more traditional emergency fund assets. Currently the out of sample result for their plan is roughly 8% real below the backtest and still trails holding cash. Hopefully individuals choosing to take additional risk are familiar with how those choices may result in lower account balances.Our emergency fund is not invested in stocks, of course. But sometimes I think we should be using a balanced fund. I keep hearing the market is at all time highs. Sometimes I feel we are being too conservative and are missing out on gains.
viewtopic.php?t=309472
https://www.portfoliovisualizer.com/bac ... MUZc43O0ME
Typically emergency funds are held for near-term reasons, so within the following framework, it may be incongruent to invest such funds into longer-term assets.
https://disciplinefunds.com/defined-duration-investing/
Statistics: Posted by alluringreality — Mon Jul 08, 2024 10:20 am — Replies 66 — Views 5463