For those who keep a warchest, is it based on a fixed amount or percentage?
How do you allocate a certain amount to your warchest?
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Jason Sing
24 Feb 2020
School Of Hard Knocks And Life at School Of Hard Knocks And Life
It depends on your objectives. Personally, I feel that the war chest should be about $100 000 if your objective is doing lump sum investing in a market during a downturn. Otherwise, you could do dollar cost averaging of about $200 to $300 every month (about 10% of your monthly income) if your objective is time in the market rather than timing the market. Hope it helps.
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For me I'm keeping a fixed amount of warchest while I'm doing DCA every month. The warchest will onl...
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As a student, I do not have a constant flow of cash every month, so therefore I will save my warchest till about $10,000 and slowly spend it whenever a good deal pops up. If not, i will continue saving and monitor the market.