IntenseDebate - MyPerFinJourney

10 years ago @ http://www.mypersonalf... - Is the Infinite Bankin... · 0 replies · +1 points

Hey Deej! The ratio of whole life premium to PUAR is a good thing to look at, but I really think that it was the higher interest rates of the 80's-90's when Nash's book was published that enabled it to shown the quicker accumulation phase.

In the policy example I showed with the $5k outlay, it was $1,807 premium to $3295 PUAR, so a ratio of 0.55, which is a little better tilted towards PUAR than Nash's illustration.
My recent post The Size of Your Emergency Fund Should Be In Inverse Proportion to the Stability of Your Income

10 years ago @ http://www.mypersonalf... - What Asset Allocation ... · 0 replies · +1 points

Glad you liked the post SVG!

From the looks of the graph, it does seem that there is some higher correlation in recent years between the REIT and the stock market.

I ran some numbers and found out that the correlation between REITS and the TSM between 1995-2011 was 0.49, so only slightly higher than the entire correlation for the whole 40 year period of 0.40.

It's tough to predict the future, so all we can do is go with what the data is showing us to make the best "guess" at how to construct our asset allocations.
My recent post The Size of Your Emergency Fund Should Be In Inverse Proportion to the Stability of Your Income

10 years ago @ http://www.mypersonalf... - What Asset Allocation ... · 0 replies · +1 points

Thanks for sharing that SVG! I'll have to check that out. I'll also do a quick search around to see if any long term data on short tips is available elsewhere.
My recent post The Size of Your Emergency Fund Should Be In Inverse Proportion to the Stability of Your Income

10 years ago @ http://www.mypersonalf... - What Asset Allocation ... · 0 replies · +1 points

Thanks for your comment David. Yeah I've definitely read about the use of those asset classes to protect against inflation. However, I've also heard the argument that they also don't provide adequate protection alone at times when it's needed most.

I'm curious - what MPT software do you use?
My recent post The Size of Your Emergency Fund Should Be In Inverse Proportion to the Stability of Your Income

10 years ago @ http://www.mypersonalf... - What Asset Allocation ... · 2 replies · +1 points

Very good point SVG! Do you know of where long term return/performance data for short-term tips can be found?

I had thought about using that, but when I saw that it was a fairly recent inclusion to the Vanguard family of funds, I figured it would be hard to find at least 20 years of historical data.
My recent post What Asset Allocation Level Should You Use for Treasury Inflation-Protected Securities (TIPS)?

10 years ago @ http://www.mypersonalf... - What Asset Allocation ... · 0 replies · +1 points

Thanks for your comment my2cent! Do you own any TIPS/TIPS funds?
My recent post What Asset Allocation Level Should You Use for Treasury Inflation-Protected Securities (TIPS)?

10 years ago @ http://www.mypersonalf... - What Asset Allocation ... · 0 replies · +1 points

Thanks so much for reading MMM! What level of TIPS allocation do you use?
My recent post What Asset Allocation Level Should You Use for Treasury Inflation-Protected Securities (TIPS)?

10 years ago @ http://www.mypersonalf... - Emergency Fund Conside... · 0 replies · +1 points

Very true Jon. Where do you keep your emergency fund?
My recent post Are You Making These Rookie Couponing Mistakes?

10 years ago @ http://www.mypersonalf... - Emergency Fund Conside... · 0 replies · +1 points

Sounds like a good method Hunter. Thanks for sharing.

In general, how much in liquid reserves do you have to keep on hand for your rental property?
My recent post Are You Making These Rookie Couponing Mistakes?

10 years ago @ http://www.mypersonalf... - Is the Infinite Bankin... · 2 replies · +1 points

Hi Deem! Thanks so much for your question.

At first glance, it would seem like adding more dollar value in to the policy premiums each year would reduce the capitalization time. Unfortunately, since the premium value is calculated in part based on the amount of death benefit, it doesn't speed up the process.

The example Nash is likely using is based on interest rates that are higher, which is a key reason why illustrations cannot be trusted.
My recent post Emergency Fund Considerations - Where Should the Account Be Located and What Should It Be Invested In?

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