Search found 932 matches

by KevinW
Fri Jul 01, 2016 6:44 pm
Forum: Permanent Portfolio Discussion
Topic: Oh Come On
Replies: 105
Views: 17834

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: 6579

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: 6579

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: 2227

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: 6579

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: 6579

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...
by KevinW
Thu Jun 30, 2016 5:09 pm
Forum: Bonds
Topic: Engineering Your Own SHY
Replies: 18
Views: 6579

Re: Engineering Your Own SHY

Essentially "yes." You can buy individual Treasury bills, either through Treasury Direct or through a brokerage with free T-bill trades. This approach has the benefit of avoiding the counterparty risk from a fund. The problem is that small retail investors pay a hidden transaction cost in the bid-as...
by KevinW
Mon May 09, 2016 1:53 pm
Forum: Permanent Portfolio Discussion
Topic: Latest Asset Class Returns vs The Average Investor
Replies: 12
Views: 3624

Re: Latest Asset Class Returns vs The Average Investor

It's sad to see that the average investor would have done better to put all their money into 3 month treasuries and a house.  Harry Browne at one point suggested that very plan for people who couldn't cope with the Permanent Portfolio structure. This is the reason that I think Dave Ramsey's investi...
by KevinW
Fri Apr 15, 2016 11:30 pm
Forum: Permanent Portfolio Discussion
Topic: Permanent portfolio accumulation and capital addition
Replies: 33
Views: 7571

Re: Permanent portfolio accumulation and capital addition

I agree with Sophie's analysis, but FWIW I follow Browne's advice, direct all contributions to cash, and follow the plain 15/35 rebalance rule. One reason is my desire to stay disciplined about not going down the slippery slope of changing the PP bit by bit until it stops being a PP. Another reason ...
by KevinW
Wed Feb 24, 2016 1:37 pm
Forum: Permanent Portfolio Discussion
Topic: Not many options in company's 401(k) plan
Replies: 5
Views: 1498

Re: Not many options in company's 401(k) plan

Another option: build one complete portfolio in your 401k and another in your taxable space. Taxable can be a by-the-book 4x25 PP with no compromises. For now, 401k can be a conservative Boglehead-style portfolio, something like 30% stock index and 70% total bond index. Most people change employers ...
by KevinW
Fri Feb 19, 2016 11:28 am
Forum: Gold
Topic: Alternatives to Physical Gold
Replies: 11
Views: 3807

Re: Alternatives to Physical Gold

IMO, in this scenario IAU is the lesser of evils. But physical gold is better.