This way you can get a large amount of equity exposure without having to put up all the cash. (financialsamurai.com)
The blue line represents all accounts split 60/40, the orange line represents a higher allocation of bonds into the 401 (k) account, with higher equity exposure in taxable account. (HyllandCapital.com)
However, volatility targeting tends to reduce equity exposure after a sharp market drop, which means the portfolio may miss the early part of the market recovery. (portfoliovisualizer.com)