Search found 35 matches

by welderwannabe
Mon Nov 28, 2022 3:21 pm
Forum: Permanent Portfolio Discussion
Topic: Help a newbie to trust the PP
Replies: 37
Views: 503

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 . For those who tend to exhibit poor investor behavior when markets got volatile I recommend getting a third party to m...
by welderwannabe
Mon Nov 28, 2022 1:34 pm
Forum: Cash
Topic: Tempting Cash Rebate offers
Replies: 36
Views: 475

Re: Tempting Cash Rebate offers

After seeing rate was better for lower amounts, I contemplated the $500 for $30k offer but still don't think it is worth it. After state tax, rate would be more like 5.1 1 year Treasury is 4.75 So all the trouble to earn an extra .35 % $100 maybe? 500 on 30,000, assuming you keep it in there 90 day...
by welderwannabe
Mon Nov 28, 2022 1:22 pm
Forum: Permanent Portfolio Discussion
Topic: Help a newbie to trust the PP
Replies: 37
Views: 503

Re: Help a newbie to trust the PP

mathjak107 wrote:
Mon Nov 28, 2022 11:24 am
There were tax tissues I could have done better
Glad i'm not the only one that needs tissues when I do my taxes.
mathjak107 wrote:
Mon Nov 28, 2022 11:24 am
I would never use the permanent portfolio during my accumulation phase , so no regrets there …
So you view at as a retiree's only portfolio? If so, why?
by welderwannabe
Mon Nov 28, 2022 12:17 pm
Forum: Gold
Topic: Time to buy more physical gold
Replies: 12
Views: 373

Re: Time to buy more physical gold

Internationally as one board member might be looking to add gold, another might be looking to reduce. For instance gold in non US dollar countries has risen, in the US its down. There are forums around where members exchange (trade) gold, where often the seller is content with spot price as is the ...
by welderwannabe
Sun Nov 27, 2022 11:08 am
Forum: Gold
Topic: Time to buy more physical gold
Replies: 12
Views: 373

Re: Time to buy more physical gold

Any opinions on where I should buy some physical from? APMEX seems to be far from the cheapest, but thats who ive usually used.
by welderwannabe
Sun Nov 27, 2022 9:51 am
Forum: Cash
Topic: Tempting Cash Rebate offers
Replies: 36
Views: 475

Re: Tempting Cash Rebate offers

To get a higher yield you have to accept more risk. And anybody who is eager to leave their cash with Citibank would do well to first read up on its history in the stock market crash of 1929 (ever heard of Charlie Mitchell?) and, more recently, the financial crisis of 2007-2009 that forced a re-str...
by welderwannabe
Sat Nov 26, 2022 5:32 pm
Forum: Permanent Portfolio Discussion
Topic: Help a newbie to trust the PP
Replies: 37
Views: 503

Re: Help a newbie to trust the PP

Separate PP 'cash' from regular spending cash account. ATM cash. Some might review/draw from the PP once/year in order to top up their ATM account with a years spending. Others might dilute that down to monthly reviews/movements. I get a free trade each month with my broker so there's no difference...
by welderwannabe
Sat Nov 26, 2022 5:14 pm
Forum: Permanent Portfolio Discussion
Topic: Help a newbie to trust the PP
Replies: 37
Views: 503

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. I was referring to the spending cash going to 0 as you are recommending it being carved out, not the PP cash. Again, in my world I just have one set of cash, but in yours your ...
by welderwannabe
Sat Nov 26, 2022 5:12 pm
Forum: Permanent Portfolio Discussion
Topic: Help a newbie to trust the PP
Replies: 37
Views: 503

Re: Help a newbie to trust the PP

I'm curious welderwannabe if you are retired and withdrawing from your portfolio as mathjak is. If you are still working and saving a bunch of "cash" each year, it might explain, at least in part, why you have a different view of how the cash quadrant should be used. Im still accumulating. My extra...
by welderwannabe
Sat Nov 26, 2022 5:04 pm
Forum: Permanent Portfolio Discussion
Topic: Help a newbie to trust the PP
Replies: 37
Views: 503

Re: Help a newbie to trust the PP

As far as what ? . My recommendation is to not mix the portfolio and spending cash . Fine if you don't want to mix PP cash and spending cash, but you posed a scenario where spending cash is drawn down to 0 due to "unexpected big expenses" as you put it, so what should he/she do if that were to happ...
by welderwannabe
Sat Nov 26, 2022 4:49 pm
Forum: Cash
Topic: Tempting Cash Rebate offers
Replies: 36
Views: 475

Re: Tempting Cash Rebate offers

After someone above pointed out the actual return on an annualized basis I am no longer interested in the offer that I used to start this topic. Math that was done was based on the worst return. I don't know who would put $300K in there to get that bonus with the other options available. $1,000 on ...
by welderwannabe
Sat Nov 26, 2022 4:42 pm
Forum: Permanent Portfolio Discussion
Topic: Help a newbie to trust the PP
Replies: 37
Views: 503

Re: Help a newbie to trust the PP

mathjak107 wrote:
Sat Nov 26, 2022 2:12 pm
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
So what is your recommendation?
by welderwannabe
Fri Nov 25, 2022 3:23 pm
Forum: Permanent Portfolio Discussion
Topic: Help a newbie to trust the PP
Replies: 37
Views: 503

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 spend...
by welderwannabe
Fri Nov 25, 2022 8:04 am
Forum: Permanent Portfolio Discussion
Topic: Help a newbie to trust the PP
Replies: 37
Views: 503

Re: Help a newbie to trust the PP

So it isn’t like that cash can or should be used as a spending fund for expenses in my opinion Everybody does this a little differently, but spending is exactly what its for. The most simple method I saw for executing the PP was to put all new moneys into the 'cash' area throughout the year, and pu...
by welderwannabe
Fri Nov 25, 2022 7:44 am
Forum: Cash
Topic: Tempting Cash Rebate offers
Replies: 36
Views: 475

Re: Tempting Cash Rebate offers

Try this one: https://en.wikipedia.org/wiki/Rhode_Island_banking_crisis The Rhode Island banking crisis took place in the early 1990s, when approximately a third of the US state of Rhode Island's population lost access to funds in their bank accounts. The events were triggered by the failure of a P...
by welderwannabe
Thu Nov 24, 2022 3:22 pm
Forum: Permanent Portfolio Discussion
Topic: Help a newbie to trust the PP
Replies: 37
Views: 503

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 dr...
by welderwannabe
Thu Nov 24, 2022 11:58 am
Forum: Cash
Topic: Tempting Cash Rebate offers
Replies: 36
Views: 475

Re: Tempting Cash Rebate offers

One of our very own, Pugchief, and I discussed the problems that ensued when his bank, Washington Mutual went under. At the time, he had an account with that bank, and then its successor bank, arranged by the FDIC. See: https://gyroscopicinvesting.com/forum/viewtopic.php?f=4&t=9106&p=162756&hilit=W...
by welderwannabe
Thu Nov 24, 2022 11:33 am
Forum: Bonds
Topic: Bond tutorial
Replies: 1
Views: 171

Re: Bond tutorial

Nice video.
by welderwannabe
Thu Nov 24, 2022 9:43 am
Forum: Cash
Topic: Tempting Cash Rebate offers
Replies: 36
Views: 475

Re: Tempting Cash Rebate offers

I think you misunderstand. The problem isn't that the FDIC will fail. It won't. But if your bank fails, it could cause you no end of headaches before FDIC makes you whole. Well since I use a lot of FDIC insured bank accounts, please educate me with some examples in recent memory where depositors ha...
by welderwannabe
Thu Nov 24, 2022 7:11 am
Forum: Cash
Topic: Tempting Cash Rebate offers
Replies: 36
Views: 475

Re: Tempting Cash Rebate offers

vnatale wrote:
Thu Nov 24, 2022 6:54 am
An individual bank can fail which then leads to your money being tied for some time. So not as good as a Treasury Bill.
FDIC usually pays within 2 days, and anecdotally its usually faster than that.

Yes, its not as good as a treasury bill, but tbills arent paying $1000 bonuses!
by welderwannabe
Thu Nov 24, 2022 6:26 am
Forum: Cash
Topic: Tempting Cash Rebate offers
Replies: 36
Views: 475

Re: Tempting Cash Rebate offers

I'd take that in a heartbeat. Its an FDIC insured savings account. As long as you keep it at $250K or less to stay in the insurance band, its just as good as a Treasury bill in my workd. If we truly have an issue where FDIC fails and the government doesn't back it, thats gonna be a scenario where ca...
by welderwannabe
Mon Nov 14, 2022 9:47 am
Forum: Bonds
Topic: Treasury Notes (Auction vs Secondary - basically a wash?)
Replies: 13
Views: 656

Re: Treasury Notes (Auction vs Secondary - basically a wash?)

joypog wrote:
Mon Nov 07, 2022 2:47 pm
lose a few weeks of interests
With a properly functioning yield curve, that is correct. With an inverted one like we have today, depending on what instrument your money is currently in, and the one you want to buy, you may actually make more waiting for the auction.
by welderwannabe
Mon Nov 14, 2022 9:39 am
Forum: Bonds
Topic: Treasury Notes (Auction vs Secondary - basically a wash?)
Replies: 13
Views: 656

Re: Treasury Notes (Auction vs Secondary - basically a wash?)

Im not a tax expert, but in short secondary market brings up two challenges 1) If you buy a treasury on the secondary market for a price less than its original issue price, then you bought it at a discount. This extra discount may not be state tax exempt depending on the state, as that extra discoun...
by welderwannabe
Mon Nov 14, 2022 7:54 am
Forum: Gold
Topic: Visit to the SWP Vault
Replies: 4
Views: 265

Re: Visit to the SWP Vault

Thanks for the writeup, thats excellent.
by welderwannabe
Sun Nov 13, 2022 9:50 am
Forum: Bonds
Topic: Treasury Notes (Auction vs Secondary - basically a wash?)
Replies: 13
Views: 656

Re: Treasury Notes (Auction vs Secondary - basically a wash?)

my opinion is auction is always better. you get the same price as the institutions. obviously this depends on your lot size. If you're buying a $100K+ bond in the secondary market, might not be much of a spread. Lower lot sizes, like maybe a $5K or $10K bond its a lot harder to get the best pricing ...