A.I.M. Users Bulletin Board

[ls7550]

Hi Tom

What really came up short was the cash reserve end of things. I bought all the components I needed, but couldn't fund the cash reserve of each piece properly.

Possibly the low cash reserve under UBAHS isn't such a bad thing.

Much of how that strategy works is down to low correlations between the individual components smoothing out the overall.

I think this is reflected in how your IRA has been trading regularly.

As such a 80/20 stock/cash or even 90/10 might be sufficient cash reserve levels to carry across the whole. Which would also considerably reduce cash-drag effects.

I guess the only potential problem is not allowing any one failing segment to burn all of cash reserves under such a shared cash pool arrangement, ETF's reduce that risk significantly.