Try this philosophy:

http://www.mrmoneymustache.com/2013/10/ ... tion-diet/

http://www.divergentfactions.com/divergent-faction-quiz.html You are Divergent - But Closest to Erudite You wake up in the testing room. Tori looks nervous. “That.. was perplexing. Excuse me, I’ll be right back,”? she says. Tori re-enters looking tense and pale. “You are Divergent,”? she says, “But ...

Correct me if I'm wrong but weren't index funds unavailable in Graham and Buffett's heydays?  If so, generating even an alpha of 0 by buying 10 stocks rather than 500 (from the S&P 500) would be a win in my book.

I buy up to 2 assets each time with the cash contribution with my monthly contribution. For larger one-time contributions, it's fine to buy all 4 assets, and I usually default to rebalancing to 25/25/25/25 using cash, unless I have views on some of the assets..  in that case, I'll choose a weight in...

How would you rebalance if you had bonds and gold in IRAs and Stocks in taxable and one craters while the other shoots to the moon?  Being able to deal with that problem is a main reason I use the PP, and separating assets in taxable and tax-free defeats the purpose.

Bridgewater All-Weather has about $50 Billion or so assets under management.. PRPFX has about $8 billion Although these are not true implementations of the PP, they pretty much have the same intention: creating a safe and secure portfolio that's relatively insensitive to the economic cycle (in theor...

I have 3 PPs: 1) A Strong-Dollar Hedged PP in my taxable account where most of my wealth is currently held (25/25/25/25 SPY/IAU/TLT/UUP) 2) A 2.66x Leveraged PP in my IRA: (33/33/33 SSO/UBT/UGL) 3) PERM in my other IRA that has about $1500 or so..  I keep it open cause it's with Fidelity and I like ...

I get that the main benefit from rebalancing is hopefully lower volatility and higher sharpe ratios but even those are not guaranteed especially if the future correlations between the assets differ drastically from those observed in the past. This is a really good point. Many have the opinion that ...

I don't have the need or patience to prove or disprove anything..  the purpose here is just to point something out. Since when did this turn into a full fledged debate?  I was merely pointing something out and there's no claim whether rebalancing is advantageous or disadvantageous, it's up to you a...

Yes you can cherry pick any start and end times you want. That's my entire point. We can't trade the past, only the future, and there is no certainty that rebalancing going forward will return more than not. If you believe there is, then how can I cherry pick a 33 year period where it didn't work? ...

Just wondering, can you cherry pick starting times, with no rebalancing that show stocks only doing significantly worse?  I bet you can. And of course, don't forget, one of the selling points of a PP is the lowered volatility and drawdowns.  How hard would it have been for stock only holders to sit...

So the PP carries Stocks, LT Treasuries, ST Treasuries, and Gold?  And only Stocks produce real returns over the long run?  Then why does it generate a return that's competitive to the 100% Equities allocation?  And why does the 60/40 Stock/Bond portfolio also generate a similar long-term return as ...

Rebalancing based on target portfolio percentages is different to me because it is future-neutral.  It makes adjustments based on your present-day portfolio, not what you think it will look like a month from now.  That's why rebalancing based on target percentages is often painful -- it may often g...

Actually, any asset allocation with a set of default weights for each asset and a rebalancing corridor is not completely passive. Let's take a look at a very simple asset allocation: 50% Stocks, 50% bonds, a 10% rebalancing corridor on either side (so if something reaches 40% or 60%, we rebalance to...

So at least 73% of the time you are invested 100% USD? On second thought, it's fine to hold overnight as long as you rebalance first thing each morning..  holding overnight positions is like breaking one of the 10 commandments in HFT but we do that all the time with our passive PPs. Still looking f...

We've got a variety of different "enhanced" versions of PPs around here: leveraged PPs, LEAPs PPs, momentum-based PPs, etc. here.. So I'd like to float another idea around: The High Frequency PP. Note: you'd need an algorithmic trading platform and preferably be physically located close to...

I kinda think of it as Zugzwang in chess..  but unlike chess, you don't have to make a move in investing if you don't want to.

I think homeownership would make a lot more sense if we could begin to apply some new technology to the industry and get past our culturally conceived ideas of what a "home" is supposed to look like. There is no reason why a weathertight, pest resistant, comfortable, safe 2 bedroom 2 bath...

You've read the 4 Hour Work Week 1 too many times.. Not saying I wouldn't dig that lifestyle as well.. There's another blogger, Chris Guillebeau, who used to talk about running his businesses while he volunteered in West Africa several years ago.  It seems running an online business is a prerequisit...

http://www.businessinsider.com/trading- ... 014-4?op=1

Either we're lazy or they're trying very hard to beat the PP..

I'm using nonstandard implementations of the PP, so depending on how you define it, either 0% or 100%

PP #1 (taxable account):

25% SPY
25% GLD
25% TLT
25% UUP

PP #2 (IRA), the leveraged PP:

1/3 UGL
1/3 SSO
1/3 UBT

Libertarian666 wrote: Rick Ferri may be a smart guy but when it comes to gold he has a major blind spot. So I take anything he says with several grains of salt.

So?  I'm about halfway done reading his entire blog and it seems he and Craig or Harry Browne would agree on many things..  except maybe gold.

Keep in mind Cash used to pay out very high interest decades ago..  in the 1970s and 80s.  (My dad immigrated to the US in the early 80s and his first impression of American banks were the double digit interest rates they paid to save money there.)  We've been accustomed to low interest rates since ...

I'm going with 0 cash (and 2x leveraged etfs) with my PP in my IRA..  F--  drawdowns and volatility - I can't get my hands on that money until many decades later anyways.  As for my taxable accounts which I'll draw on in an emergency, I go with the standard HB PP.

http://www.cnbc.com/id/101519763 Stock: A career path with high pay but high instability.  Examples: Entrepreneurship, Finance, Tech, etc. Bond: A career path with low pay and high stability.  Examples: Government, tenured professors, medicine, etc. It seems PP may be more suitable for people with a...