Heyo folks,
I've got a "paid up" cash value (WL) policy that my dad started for me that from my calculations is "earning" (growing by) about 4% annually.
Since starting to track and really hit the MMM life, I have been thinking of this as separate from my asset allocation, but I seem to recall some discussion somewhere of people using that decent interest rate as a substitute for the more stable part of my AA (bonds, cash).
At 34 yrs old, I'm currently sitting at about 7% bond allocation and as it happens, the cash value is about the right size to substitute for bonds. Is this a silly idea?
Are bonds superior to CVLIPs as the stable portion of the AA?
I think the answer is yes. But I don't have a good explanation. Thoughts?