Applies insurer-style asset-liability matching to a projected tax bill, tiering the reserve into a near-term liquid layer, a contractual-income layer, and a variance buffer sized to the projection's own uncertainty, rather than treating it as one lump-sum decision.
The central mechanism of the Invest Like an Insurance Company framework page: tiering a projected tax bill into a near-term liquid layer, a contractual-income layer, and a variance buffer sized to the projection's own uncertainty, the way an insurer matches assets to a known future liability instead of parking or gambling the reserve as one lump sum.
"Applies insurer-style asset-liability matching to a projected tax bill, tiering the reserve into a near-term liquid layer, a contractual-income layer, and a variance buffer sized to the projection's own uncertainty, rather than treating it as one lump-sum decision."