Search found 308 matches

by jhogue
Tue May 07, 2019 8:21 am
Forum: Permanent Portfolio Discussion
Topic: Moving into the PP
Replies: 37
Views: 1694

Re: Moving into the PP

ppnewbie: Your residential real estate is a business, not an investment. The market for your business is highly localized and relatively ill-liquid—which means your principal is not guaranteed and cannot be converted into cash overnight. Also, the income stream from your rental is not guaranteed. It...
by jhogue
Sat May 04, 2019 3:03 pm
Forum: Permanent Portfolio Discussion
Topic: Moving into the PP
Replies: 37
Views: 1694

Re: Moving into the PP

Remember that the purpose of rebalancing is to reduce overall risk in the portfolio, not to make short-term gains.
by jhogue
Thu May 02, 2019 1:31 pm
Forum: Gold
Topic: Gold ETF Fee War Gets Complicated
Replies: 10
Views: 491

Re: Gold ETF Fee War Gets Complicated

It has been over 4 years since I read the prospectus and made my initial purchase of SGOL-- so I may not be current-- but I am pretty sure that SGOL did not offer an in-person physical conversion capability when I first bought in. That would certainly be a useful option, but would probably come at a...
by jhogue
Thu May 02, 2019 12:49 pm
Forum: Gold
Topic: Gold ETF Fee War Gets Complicated
Replies: 10
Views: 491

Re: Gold ETF Fee War Gets Complicated

I picked SGOL as an ETF for my tax deferred account largely because it offered geopolitical diversification. (They hold their gold in vaults in Switzerland). It has been a nice bonus to see that they have cut their ER to compete with other gold ETFs. For buy-and-hold-investors, I think it will make ...
by jhogue
Thu May 02, 2019 8:38 am
Forum: Cash
Topic: New I bond rate, 5/1/19 to 10/30/19
Replies: 5
Views: 517

Re: New I bond rate, 5/1/19 to 10/30/19

Just bought so I woulda been pissed if the fixed rate went up. Now Im just mildly annoyed, wouldve preferred to wait until December, to see how macro events play out Buying I bonds for Deep Cash means I buy my $10K quota each year based on how I think that the fixed rate will move. That is the rate...
by jhogue
Wed May 01, 2019 5:16 pm
Forum: Cash
Topic: New I bond rate, 5/1/19 to 10/30/19
Replies: 5
Views: 517

New I bond rate, 5/1/19 to 10/30/19

Treasury Direct announced the new I Bond rate today. The fixed rate will remain at 0.50%. Combined with the previously announced semi-annual inflation rate of 0.70%, the new composite rate works out to be 1.90%, tax deferred for 30 years and free from state and local taxes. The new rate is a signifi...
by jhogue
Mon Apr 22, 2019 10:22 am
Forum: Cash
Topic: New I Bond Rate 11/1/18 to 4/30/18
Replies: 51
Views: 5985

Re: New I Bond Rate 11/1/18 to 4/30/18

Kbg,

Can you explain your interest in corporates and munis? I think there is more than ratings risk involved in them.
by jhogue
Wed Apr 17, 2019 9:55 am
Forum: Other Discussions
Topic: Long Term Care
Replies: 54
Views: 2855

Re: Long Term Care

sophie, You have put your finger squarely on a dilemma we are all apt to face. I had a similar problem with my 89 year old mother only a few months before she died last year when she somehow got the notion to cancel her Medicare part B coverage out of the blue. It led to a very unpleasant and exaspe...
by jhogue
Wed Apr 17, 2019 9:35 am
Forum: Bonds
Topic: 30 Year TIPS Bonds
Replies: 6
Views: 1712

Re: 30 Year TIPS Bonds

Think of it this way: When deflation strikes the economy, you want to be holding LTTs. EE bonds would respond too, but the problem with them is the limitation on purchase plus the long term liquidity dilemma they pose in order to capture the guaranteed interest rate doubling effect at 20 years. LTTs...
by jhogue
Wed Apr 17, 2019 8:59 am
Forum: Cash
Topic: New I Bond Rate 11/1/18 to 4/30/18
Replies: 51
Views: 5985

Re: New I Bond Rate 11/1/18 to 4/30/18

Yup.

With the 1 year T bill currently at 2.43%, I bonds purchased after May 1 do not look appealing.
by jhogue
Tue Apr 16, 2019 6:52 pm
Forum: Cash
Topic: New I Bond Rate 11/1/18 to 4/30/18
Replies: 51
Views: 5985

Re: New I Bond Rate 11/1/18 to 4/30/18

You are probably right that for the long term holder of I-bonds, 30 year tax deferral and inflation protection might prove more valuable than their current yield. But given the propensity for politicians of all stripes to tinker with the tax code, anything is possible. That said, I think that the I ...
by jhogue
Mon Apr 15, 2019 2:19 pm
Forum: Cash
Topic: New I Bond Rate 11/1/18 to 4/30/18
Replies: 51
Views: 5985

Re: New I Bond Rate 11/1/18 to 4/30/18

Completed buying my full allocation of I bonds for 2019 last week. The 2.83% composite rate looked too good to pass up. In comparison, the 1 year Treasury is currently 2.43%, while the 5 year Treasury stands at 2.37%. The Treasury yield curve inverted in December 2018 and has since gotten wider and ...