Search found 4306 matches

by mathjak107
Tue Nov 29, 2022 4:20 pm
Forum: Permanent Portfolio Discussion
Topic: Help a newbie to trust the PP
Replies: 42
Views: 663

Re: Help a newbie to trust the PP

The best plan is a comprehensive plan . A spia sharing some of the bond budget , your own investing , and permanent life insurance which is tax free to a spouse now filing single . That tax free life insurance can be priceless when filing single , rmds , and potential surcharges on your Medicare and...
by mathjak107
Tue Nov 29, 2022 11:53 am
Forum: Permanent Portfolio Discussion
Topic: Help a newbie to trust the PP
Replies: 42
Views: 663

Re: Help a newbie to trust the PP

Kitces crunched the numbers and found that someone delaying from 62 to 70 and laying out the ss they are not getting or spending down invested assets , would take about 22 years to just equal a balanced portfolio and early ss . That is with no spousal figured and 3% inflation It would take until age...
by mathjak107
Mon Nov 28, 2022 4:38 pm
Forum: Permanent Portfolio Discussion
Topic: Help a newbie to trust the PP
Replies: 42
Views: 663

Re: Help a newbie to trust the PP

If you think you will need the money sooner then it’s not totally long term money …different situation then trying to grow money during the accumulation stage where it is truely long term money . I also thought I was going to retire in my late 50’s so my model changed from 100% equities . We thought...
by mathjak107
Mon Nov 28, 2022 2:28 pm
Forum: Permanent Portfolio Discussion
Topic: Help a newbie to trust the PP
Replies: 42
Views: 663

Re: Help a newbie to trust the PP

Since you asked , Yes , I view the pp as a capital preservation portfolio, after you compounded and grew your money as best as you could and that usually means decades of equities . It makes little sense financially as a long term investor with decades to go to mitigate Temporary short term dips and...
by mathjak107
Mon Nov 28, 2022 11:24 am
Forum: Permanent Portfolio Discussion
Topic: Help a newbie to trust the PP
Replies: 42
Views: 663

Re: Help a newbie to trust the PP

I would never use the permanent portfolio during my accumulation phase , so no regrets there … If anything I regret not learning about things I didn’t know I didn’t know , and see a good planner early on before I got to far out of my accumulation stage.. Things,Ike how to structure for a nice aca su...
by mathjak107
Mon Nov 28, 2022 8:49 am
Forum: Permanent Portfolio Discussion
Topic: Help a newbie to trust the PP
Replies: 42
Views: 663

Re: Help a newbie to trust the PP

When you are collecting , the Medicare premium increases are capped to no higher than the cola is .

If you delay , there is no cap

It is called the hold harmless provision
by mathjak107
Mon Nov 28, 2022 7:39 am
Forum: Permanent Portfolio Discussion
Topic: Help a newbie to trust the PP
Replies: 42
Views: 663

Re: Help a newbie to trust the PP

So I retired at 61 but filed for ss at 65 ….my fra was 66 My opinion is When one delays ss they shouldn’t wait until they file for ss to first spend more . Rather the budget should stay the same from day one and all that changes is the ratio of your money vs ss money .. So in the beginning we were l...
by mathjak107
Sun Nov 27, 2022 10:16 am
Forum: Cash
Topic: Tempting Cash Rebate offers
Replies: 36
Views: 548

Re: Tempting Cash Rebate offers

I would argue a power grid hack or weather taking out internet access is a bigger worry then the bank going belly up .

We had it happen twice here in nyc .

Once on 9/11 when major communication lines were destroyed and then again in sandy where power and communication lines were down
by mathjak107
Sun Nov 27, 2022 9:56 am
Forum: Cash
Topic: Tempting Cash Rebate offers
Replies: 36
Views: 548

Re: Tempting Cash Rebate offers

I would agree
by mathjak107
Sun Nov 27, 2022 8:36 am
Forum: Cash
Topic: Tempting Cash Rebate offers
Replies: 36
Views: 548

Re: Tempting Cash Rebate offers

So far I have had my money market fail . Also fidelity has their own team of hackers that search the dark web for anything pertaining to fidelity accounts . They found my wife’s info up there so they immediately locked the account . The crazy thing is she never logs in . I didn’t have access to our ...
by mathjak107
Sun Nov 27, 2022 5:32 am
Forum: Permanent Portfolio Discussion
Topic: Help a newbie to trust the PP
Replies: 42
Views: 663

Re: Help a newbie to trust the PP

Remember too , that the rebalance bands while acceptable don’t really provide adequate coverage when they get that far from the 25% . That bond barbel of cash and long term treasuries can be no longer balanced properly when cash hits those rebalance bands . You need a lot more cash to hold down that...
by mathjak107
Sun Nov 27, 2022 5:24 am
Forum: Permanent Portfolio Discussion
Topic: Help a newbie to trust the PP
Replies: 42
Views: 663

Re: Help a newbie to trust the PP

As ii mentioned in another thread we don’t use the traditional constant dollar method of withdrawal which is what the 4% swr is . The problem is with a traditional 60/40 you ended 90% of the 122 30 year cycles we had , with more than you started with . 70% of the time you ended with more than 2x wha...
by mathjak107
Sat Nov 26, 2022 5:10 pm
Forum: Permanent Portfolio Discussion
Topic: Help a newbie to trust the PP
Replies: 42
Views: 663

Re: Help a newbie to trust the PP

I never said it goes to zero but it could be heavily depleted leaving the long treasury bonds with not much fighter cover.

Your only recourse is to rebalance whether up or down.

Plus if stocks took a nasty hit and cash was already low what would you use to bring back up the stocks ?
by mathjak107
Sat Nov 26, 2022 5:00 pm
Forum: Permanent Portfolio Discussion
Topic: Help a newbie to trust the PP
Replies: 42
Views: 663

Re: Help a newbie to trust the PP

As far as what ? . My recommendation is to not mix the portfolio and spending cash . My recommendation is also this :according to kitces every worst case outcome happened when the 15 year average of a 30 year retirement fell below 2% real return . Every failure was determined in the first 15 years ....
by mathjak107
Sat Nov 26, 2022 4:28 pm
Forum: Permanent Portfolio Discussion
Topic: Help a newbie to trust the PP
Replies: 42
Views: 663

Re: Help a newbie to trust the PP

Keep in mind that to be considered a swr , technically you need to use the same data that defines a safe withdrawal rate . That means getting through 1907 , 1929 ,1937, 1965,,1966 . Those dates were the worst years for a retiree to start their retirement ,and these are the starting dates a safe with...
by mathjak107
Sat Nov 26, 2022 2:12 pm
Forum: Permanent Portfolio Discussion
Topic: Help a newbie to trust the PP
Replies: 42
Views: 663

Re: Help a newbie to trust the PP

So what if you spent your 4% or even more if there are unexpected big expenses and now you need to refill cash but markets are down ..you will need to sell what’s down , which is what you hoped to avoid
by mathjak107
Sat Nov 26, 2022 5:14 am
Forum: Permanent Portfolio Discussion
Topic: Help a newbie to trust the PP
Replies: 42
Views: 663

Re: Help a newbie to trust the PP

He said his goal was to draw 4% from the pp eventually … But in Practice when you think about using the cash portion to spend down you are taking away from its job in the pp which is to counter the long term bonds duration . As well as still needing the cash portion to likely buy other assets in a d...
by mathjak107
Sat Nov 26, 2022 2:31 am
Forum: Cash
Topic: Tempting Cash Rebate offers
Replies: 36
Views: 548

Re: Tempting Cash Rebate offers

Just a heads up with citi bank ..
Don’t just draw the money out when the promo is done , you must actually close the account out or there are monthly fees for falling below the min balance .

It is a simple process but you do have to close it
by mathjak107
Fri Nov 25, 2022 4:44 pm
Forum: Permanent Portfolio Discussion
Topic: Help a newbie to trust the PP
Replies: 42
Views: 663

Re: Help a newbie to trust the PP

What I do is I fill our checking account with the years spending money every jan 2 .. Done . That money is separate from our portfolio and gets spent to zero by years end .. All dividends and interest goes towards the following years Money ….it gets buffered in a bucket so to speak . We never try to...
by mathjak107
Fri Nov 25, 2022 8:39 am
Forum: Cash
Topic: Tempting Cash Rebate offers
Replies: 36
Views: 548

Re: Tempting Cash Rebate offers

Yes 100k plus. 100 each in a checking account which you needed for the deal ..

So 100k in savings and 200 in total in two checking accounts
by mathjak107
Fri Nov 25, 2022 8:05 am
Forum: Permanent Portfolio Discussion
Topic: Help a newbie to trust the PP
Replies: 42
Views: 663

Re: Help a newbie to trust the PP

Well if markets are down where is all the money you spend down from cash coming from to refill for the following year if that is the source of spending cash ?. Depending how far other assets are hit you may have to buy more of the other assets with any cash left further reducing your cash for spendi...
by mathjak107
Fri Nov 25, 2022 8:03 am
Forum: Cash
Topic: Tempting Cash Rebate offers
Replies: 36
Views: 548

Re: Tempting Cash Rebate offers

I had a money market fail in 2008 …we were locked out for a while .

While not fdic it did show that you may need multiple sources to pay bills with
by mathjak107
Fri Nov 25, 2022 8:01 am
Forum: Permanent Portfolio Discussion
Topic: Help a newbie to trust the PP
Replies: 42
Views: 663

Re: Help a newbie to trust the PP

My opinion is one has to look at cash as integral part of the portfolio… It isn’t really there as a traditional source of spending money , it has a roll and job function in the portfolio so you want it in the right allocation to all the other assets . So usually that means if you do use it for spend...
by mathjak107
Fri Nov 25, 2022 2:15 am
Forum: Cash
Topic: Tempting Cash Rebate offers
Replies: 36
Views: 548

Re: Tempting Cash Rebate offers

We have been doing the citi bank priority account bonus for years . My wife and I each get 700 for putting 50k in ..then i get 100 as a referral fee for a total of 1500 .. it stays gfor 60 days and then figure a weeks for the bonus They let us repeat every 6 months . I will check next month and see ...
by mathjak107
Fri Nov 25, 2022 2:08 am
Forum: Permanent Portfolio Discussion
Topic: Help a newbie to trust the PP
Replies: 42
Views: 663

Re: Help a newbie to trust the PP

Don't check it all the time if you get anxiety from the volatility. Investing has ups and downs. Only alternative is 100% cash, which won't grow much. The PP is a heavy cash portfolio. Focus on the cash portion. As long as you have a couple years expenses in that cash, you can ride out short term d...