Search found 926 matches

by KevinW
Wed Jul 20, 2016 1:44 pm
Forum: Permanent Portfolio Discussion
Topic: Things about the PP that do not make sense to me
Replies: 37
Views: 9052

Re: Things about the PP that do not make sense to me

The cash component: - Retains value during tight-money recessions, so that you can "buy low" on stocks, or even consumer purchases such as real estate and cars. - Prevents you from "selling low" on other assets when you withdraw from the portfolio (as Sophie has analyzed). - Performs well when inter...
by KevinW
Thu Jul 14, 2016 1:03 pm
Forum: Permanent Portfolio Discussion
Topic: Scott Burns' Co on the PP
Replies: 58
Views: 15928

Re: Scott Burns' Co on the PP

The only wrinkle is that the age in bonds portfolio will get a bit of a head start through the young professional's retirement program. Not much of one though. True. What is the "default" advice for a young professional starting a PP from scratch? Browne said to maximize tax efficiency, but hold go...
by KevinW
Wed Jul 13, 2016 8:01 pm
Forum: Permanent Portfolio Discussion
Topic: Scott Burns' Co on the PP
Replies: 58
Views: 15928

Re: Scott Burns' Co on the PP

The comparison of the 60/40 returns to the 25x4 PP indeed isn't fair, because the owner of the 60/40 needs to hold cash. How much isn't clear, but most would recommend a sizeable enough chunk that it's a significant fraction of the stock/bond portfolio. Hear, hear. The time spent accumulating the c...
by KevinW
Sat Jul 09, 2016 1:01 am
Forum: Permanent Portfolio Discussion
Topic: Vanguard Sucks
Replies: 21
Views: 4768

Re: Vanguard Sucks

What's the advantage of a mutual fund over an ETF again? Price is less volatile - don't have to pay extra to ensure 'market' price is really 'market' price. Also, when you buy funds directly from the sponsor (Vanguard), there is slightly less counterparty risk since there is no stock exchange in th...
by KevinW
Fri Jul 08, 2016 12:27 am
Forum: Permanent Portfolio Discussion
Topic: Vanguard Sucks
Replies: 21
Views: 4768

Re: Vanguard Sucks

Their stated philosophy is to minimize complexity and transaction costs. They'd rather have you lump everything into one fund-of-funds, or maybe a three-fund portfolio. The only workarounds are things I expect you've already decided not to do: streamline to fewer funds, replace some of the individua...
by KevinW
Fri Jul 01, 2016 6:54 pm
Forum: Bonds
Topic: Engineering Your Own SHY
Replies: 18
Views: 6390

Re: Engineering Your Own SHY

Kbg wrote:I think it looks like breakeven to maybe even a bit more expensive to do the ladder vs. SHY given my likely trade size. And certainly SHY wins in the hassle factor category.
Yeah, that's my feeling. The ladder works and people who use it are not wrong, but for me it's not worth the hassle.
by KevinW
Fri Jul 01, 2016 6:44 pm
Forum: Permanent Portfolio Discussion
Topic: Oh Come On
Replies: 105
Views: 17356

Re: Oh Come On

So when the portfolio goes down for a few days, people complain bitterly and need reassurance. And when the portfolio goes up for a few days, people complain bitterly and need reassurance. Maybe you guys need a therapist more than you need an Internet forum. :P I kid, but seriously: the PP is having...
by KevinW
Fri Jul 01, 2016 1:03 pm
Forum: Bonds
Topic: Engineering Your Own SHY
Replies: 18
Views: 6390

Re: Engineering Your Own SHY

Couldn't you just avoid that by only buying on the run issues? AFAIK yes, but I don't know whether any brokers allow you to buy bills at auction commission free. You can buy auction bills through Treasury Direct but that's taxable only. Also there's the issue of what you do with idle cash in betwee...
by KevinW
Fri Jul 01, 2016 12:56 pm
Forum: Bonds
Topic: Engineering Your Own SHY
Replies: 18
Views: 6390

Re: Engineering Your Own SHY

BTW, it's not through that Investing In Bonds site... that's just a click through to Morningstar where you can input your CUSIP. Now anyways, according to them, the last trade (on the day I bought it for 100.74) was 100.72. The day before it was 100.62, so it probably was trading between 100.62 and...
by KevinW
Thu Jun 30, 2016 7:23 pm
Forum: Permanent Portfolio Discussion
Topic: Brexit Schmexit
Replies: 8
Views: 2186

Re: Brexit Schmexit

The Brexit affair, and the news coverage and market responses to it, are a good case study for a lot of Harry Browne's ideas.
by KevinW
Thu Jun 30, 2016 6:51 pm
Forum: Bonds
Topic: Engineering Your Own SHY
Replies: 18
Views: 6390

Re: Engineering Your Own SHY

Kriegsspiel wrote:What is the 1% markup in? The yield?
Please see the article I linked. When you buy a bond through a broker, the broker buys it from someone else and then sells it to you at a higher price. That markup is usually undisclosed, so it's difficult to know what exactly it is.
by KevinW
Thu Jun 30, 2016 6:02 pm
Forum: Bonds
Topic: Engineering Your Own SHY
Replies: 18
Views: 6390

Re: Engineering Your Own SHY

Unfortunately the markup is not so easy to find: http://www.forbes.com/2009/02/26/munis-spreads-markups-personal-finance_investing_ideas_bond_brokers.html Generally, a 1% to 2% markup is acceptable for retail buyers. Unfortunately, exaggerated markups (over 5%) occur more often with uninformed inves...