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by moda0306
Tue Nov 30, 2010 3:48 pm
Forum: Permanent Portfolio Discussion
Topic: Finally Close....Need Final Push & Opinions Please!
Replies: 26
Views: 16782

Re: Finally Close....Need Final Push & Opinions Please!

Completely agreed with Craig. Craig, you maybe should think of doing a podcast on tax efficiency.  There are more intricacies to tax deferred plans that can make them more flexible than most people think (ie, being able to withdraw Roth contributions after 5 years... it significantly increases the f...
by moda0306
Tue Nov 30, 2010 1:13 pm
Forum: Gold
Topic: How to not get ripped off
Replies: 13
Views: 9441

Re: How to not get ripped off

I second his curiosity.  I like the idea of owning them myself as opposed to using a non-vanguard fund... especially in the accumulation phase when I don't really have to sell it, but simply adjust what I buy more of.
by moda0306
Tue Nov 30, 2010 10:53 am
Forum: Permanent Portfolio Discussion
Topic: Buying into PP at the high?
Replies: 7
Views: 4807

Re: Buying into PP at the high?

I think the PP only tends to feel like a bad idea when there is lots of prosperity... historically, that seems to be the only time that I think I'd be queasy about my PP allocation, that is, when my friends and neighbors are all getting 25% return and I'm getting 8%. So, if you have money you can af...
by moda0306
Mon Nov 29, 2010 4:15 pm
Forum: Permanent Portfolio Discussion
Topic: Finally Close....Need Final Push & Opinions Please!
Replies: 26
Views: 16782

Re: Finally Close....Need Final Push & Opinions Please!

Agreed with Craig... you can fight and toil all day for that last 1% of average return out of your stocks, and still be left chasing your tail at the end of the day, and with a higher tax-bill to boot. Keep the PP simple, and with the rest of your money (VP), dig into emerging markets, options, indi...
by moda0306
Mon Nov 29, 2010 4:01 pm
Forum: Cash
Topic: FDIC exposure
Replies: 11
Views: 8065

Re: FDIC exposure

Jmourik, Going into debt to buy consumer goods is probably the most fun but least effective way of hedging for currency collapse.  If our currency collapses, you'll be MUCH better off with more emergency goods or even just gold/silver bullion than any new car.  The destabilizing blow to our economy ...
by moda0306
Mon Nov 29, 2010 9:49 am
Forum: Gold
Topic: Silver in the PP
Replies: 11
Views: 7622

Re: Silver in the PP

I agree that it's thousands of years of history as opposed to some back-tested 20-year scam.  Its ability to STORE value is amazing, but it can only store so much value, can't it?  An ounce of gold should only ever be worth what its underlying economic/industrial/luxury value is. I think I'd want to...
by moda0306
Sun Nov 28, 2010 6:04 pm
Forum: Gold
Topic: Silver in the PP
Replies: 11
Views: 7622

Re: Silver in the PP

I see holding some silver as a great choice.  We all know how Gold has behaved in the past, but to me, gold has very little intrinsic value and I am basing its candidacy in the PP simply based on past performance.  At least silver has some intrisic value.  No, I'm not saying "own copper, aluminum, a...
by moda0306
Tue Nov 23, 2010 8:10 am
Forum: Bonds
Topic: Why should I buy Treasuries now?
Replies: 46
Views: 36428

Re: Why should I buy Treasuries now?

KevD & Others skeptical of LT Bonds, I have one word for you: Japan. I don't have time to look up details, but their national (public) debt is much higher than ours, and their Long-term bonds are now at 1% or so.  I'm not saying the US will go to 1%, but it could happen.  Imagine how much your 4.3% ...
by moda0306
Fri Nov 19, 2010 3:56 pm
Forum: Permanent Portfolio Discussion
Topic: PP with large amount of illiquid real estate
Replies: 3
Views: 2845

Re: PP with large amount of illiquid real estate

Well the amount you can't afford to lose theoretically should be your PP, so if that 30% is sufficient, then I think you're ok keeping that a normal PP. If, hypothetically, the entire 100% of your net worth is money you don't think you can afford to lose, but you can't get rid of the land, you may w...
by moda0306
Fri Nov 19, 2010 2:14 pm
Forum: Bonds
Topic: 401 K Lemonade
Replies: 11
Views: 6640

Re: 401 K Lemonade

Storm, While that's quite the deal (15% off), there are some risks involved, which I'm sure you know. You ever think of trading options of that stock to limit your exposure to sharp downside?  I'm not sure how well this works, but I'm just thinking you're maybe leaving yourself with a little too muc...
by moda0306
Fri Nov 19, 2010 12:11 pm
Forum: Permanent Portfolio Discussion
Topic: Mortgage/Home For Young Investors
Replies: 16
Views: 8373

Re: Mortgage/Home For Young Investors

I'm not so much saying that my house is an "investment," but if 1) your largest single expense is your rent/mortgage, and 2) you are protected from inflation for at-least that cost by having a 30-year fixed mortgage, then you have different exposure to inflation that someone renting. I am not saying...
by moda0306
Thu Nov 18, 2010 5:11 pm
Forum: Permanent Portfolio Discussion
Topic: Tax Efficiency
Replies: 21
Views: 12498

Re: Tax Efficiency

Ideally, you'd have your "emergency fund" in the form of $200-500 in a safe, whatever else you need for 6-12 months of living expenses in a savings account, and maybe some bullion in case of bad inflation. The next level of liquidity, as Kevin points out, would be your roth contributions of over 5 y...
by moda0306
Thu Nov 18, 2010 3:00 pm
Forum: Permanent Portfolio Discussion
Topic: Mortgage/Home For Young Investors
Replies: 16
Views: 8373

Re: Mortgage/Home For Young Investors

That really changes things, and being a tax guy, I can't believe I didn't think of that...
by moda0306
Thu Nov 18, 2010 2:10 pm
Forum: Permanent Portfolio Discussion
Topic: Mortgage/Home For Young Investors
Replies: 16
Views: 8373

Re: Mortgage/Home For Young Investors

Saluki.... Touche!
by moda0306
Thu Nov 18, 2010 8:58 am
Forum: Permanent Portfolio Discussion
Topic: Tax Efficiency
Replies: 21
Views: 12498

Re: Tax Efficiency

MMM, Great point, and I've thought about that same thing.  I guess money you "cant afford to lose" you should look at and ask yourself, "why can't I afford to lose it." There's 2 major reasons: 1) someday you won't be able to work (retirement), and 2) you may lose your job for up to xx months (unemp...
by moda0306
Wed Nov 17, 2010 3:29 pm
Forum: Permanent Portfolio Discussion
Topic: You Know PP Isn't Overbought When...
Replies: 9
Views: 7116

Re: You Know PP Isn't Overbought When...

Doug, Yeah it's ridiculous.  As long as these plans have one emerging markets fund and one stable value fund people think they're getting the full risk spectrum. I will say, I really have no problem with a non-index stock fund.... it seems to me that if stocks are doing well, any reasonable stock fu...
by moda0306
Wed Nov 17, 2010 1:45 pm
Forum: Permanent Portfolio Discussion
Topic: You Know PP Isn't Overbought When...
Replies: 9
Views: 7116

Re: You Know PP Isn't Overbought When...

Agreed... way too many financial advisors bend the portfolios to what makes them money, not what's best for their clients.
by moda0306
Wed Nov 17, 2010 1:13 pm
Forum: Permanent Portfolio Discussion
Topic: You Know PP Isn't Overbought When...
Replies: 9
Views: 7116

Re: You Know PP Isn't Overbought When...

Nothing... this isn't a complaint so much as it's an indication of what investments most people care about.

That said, I can contribute much more every year to my 401(k) plan than to any IRA option, so it'd be especially nice if they offered something along those lines.
by moda0306
Wed Nov 17, 2010 1:05 pm
Forum: Permanent Portfolio Discussion
Topic: You Know PP Isn't Overbought When...
Replies: 9
Views: 7116

Re: You Know PP Isn't Overbought When...

I was speaking about my ING IRA specifically.  They have various funds with in 8 different mutual fund brokers, but not 1 Long-Term Treasury fund nor any kind of precious metal index or anything.  Right now it's not a problem. It's just an indication of how little interest there still is in precious...
by moda0306
Wed Nov 17, 2010 12:51 pm
Forum: Permanent Portfolio Discussion
Topic: Mortgage/Home For Young Investors
Replies: 16
Views: 8373

Mortgage/Home For Young Investors

I'm 26, and I just bought a home with a 90% LTV 30 year 5% mortgage.  Here's my dilemma: I feel, at this point in my life, I'm over-hedged for inflation, so if I were to go into a PP, I feel like I should be less exposed to Gold and more to LT Treasuries.  I know homes aren't the best inflation hedg...
by moda0306
Wed Nov 17, 2010 11:02 am
Forum: Permanent Portfolio Discussion
Topic: You Know PP Isn't Overbought When...
Replies: 9
Views: 7116

Re: You Know PP Isn't Overbought When...

Yes, when you change jobs you get some flexibility, but there's no excuse that the most educated professionals in this field are completely ignorant of how these pieces move in the market, or at least not bringing that value to the consumers of their product. It'd be like a doctor offering me two pr...
by moda0306
Wed Nov 17, 2010 10:58 am
Forum: Gold
Topic: Five Stages of Inflation
Replies: 23
Views: 14712

Re: Five Stages of Inflation

MT, I find your "contrarian" view on inflation very interesting, and it's a very necessary part of the macro-economic debate.  If you really think the fed's actions can't be inflationary until people begin spending, then why do you have some sort of problem with Keynesians driving the bus.  It's the...
by moda0306
Wed Nov 17, 2010 9:35 am
Forum: Permanent Portfolio Discussion
Topic: You Know PP Isn't Overbought When...
Replies: 9
Views: 7116

You Know PP Isn't Overbought When...

... neither my 401(k) plan, nor my ING IRA fund choices offer a Long-term Treasuries fund, or a commodity index or gold fund of any sort.  It's slightly infuriating, as LT bonds tend to throw out a lot of annoyingly high taxable income, and if your 401(k) plan (which has the highest allowed contribu...
by moda0306
Sat Nov 13, 2010 9:06 am
Forum: Permanent Portfolio Discussion
Topic: Tax Efficiency
Replies: 21
Views: 12498

Re: Tax Efficiency

6 Iron, Yes, as you approach the point of actually needing the money, it becomes very important to have enough in taxable accounts to get you to 59.5. Assuming you have the proper amount in your taxable accounts, but allocate the most tax-efficient assets to those accounts, your draw-dawn will begin...
by moda0306
Fri Nov 12, 2010 9:07 pm
Forum: Permanent Portfolio Discussion
Topic: Tax Efficiency
Replies: 21
Views: 12498

Re: Tax Efficiency

BUMP.

Just thought there's some useful information here people may not have seen.

The key is using the flexibility these things have to offer.  Roth IRAs: you can pull your principal out, HSAs: you can pull money out for medical expenditures.

Any questions or comments are welcome.