Search found 945 matches

by KevinW
Thu Jun 24, 2010 7:10 pm
Forum: Permanent Portfolio Discussion
Topic: Only PP or add more risk in VP to shoot for long term goal?
Replies: 11
Views: 7385

Re: Only PP or add more risk in VP to shoot for long term goal?

I think your personal attitude toward working longer is the biggest factor in a decision like this.  I know people that hate work and would put delaying retirement 6 years in the same boat as a prison sentence.  Then again I know others that could've retired years ago but choose to keep working beca...
by KevinW
Tue Jun 22, 2010 7:43 pm
Forum: Cash
Topic: Separate emergency fund?
Replies: 10
Views: 9808

Separate emergency fund?

Financial advisors tend to suggest building up a liquid cash reserve of 3-12 months' expenses before investing.  In effect, the advice is to hold two portfolios: an "emergency" portfolio of 100% cash, and an "everything else" portfolio of a volatile mix of stocks and bonds. Is a separate emergency f...
by KevinW
Sun Jun 20, 2010 7:23 pm
Forum: Permanent Portfolio Discussion
Topic: 2xPP
Replies: 16
Views: 14066

Re: 2xPP

Wow.

Does this simulation account for expenses?  Leveraged funds tend to have some pretty high expense ratios.
by KevinW
Sun Jun 13, 2010 3:33 pm
Forum: Bonds
Topic: Why not AGG or BND instead of TLT???????????
Replies: 3
Views: 5541

Re: Why not AGG or BND instead of TLT???????????

From the Bond FAQ: You only want to own the highest quality long term bonds you can buy.   By definition, total bond market funds such as BND and AGG have intermediate duration and include bonds with credit and/or call risk.  The FAQ goes into a great deal of depth on why this is bad in the context ...
by KevinW
Sat Jun 12, 2010 3:46 pm
Forum: Permanent Portfolio Discussion
Topic: Vanguard as IRA Custodian for USian HBPP via ETFs
Replies: 15
Views: 12243

Re: Vanguard as IRA Custodian for USian HBPP via ETFs

I would like to have all my investments at one broker and I think VG is a smart choice. I am also a Vanguard fan.  I think their mutual structure keeps their interests aligned with investors' interests, which is valuable in the long run. Another alternative is to buy individual Treasury bills and b...
by KevinW
Sat Jun 12, 2010 12:23 am
Forum: Permanent Portfolio Discussion
Topic: Vanguard as IRA Custodian for USian HBPP via ETFs
Replies: 15
Views: 12243

Re: Vanguard as IRA Custodian for USian HBPP via ETFs

Thanks for the advice.  I think this will probably be the route I take until I have more sheltered space.  In essence it will be akin to having 2 PP in my portfolio. Sort of, I suppose I'd say that you have one big permanent portfolio that's split in two.  The split happens at the boundary between ...
by KevinW
Fri Jun 04, 2010 5:57 pm
Forum: Permanent Portfolio Discussion
Topic: Vanguard as IRA Custodian for USian HBPP via ETFs
Replies: 15
Views: 12243

Re: (re)Balancing Act

1. I have 60k to invest and only 5k available sheltered space for 2010. 2. Gains from assets in my tax-sheltered space cannot be Distributed to balance assets in the taxable portion of the portfolio as an 'early withdrawal' penaly would occur. So, I could only add new fnds to balance, but again run...
by KevinW
Fri Jun 04, 2010 5:02 pm
Forum: Permanent Portfolio Discussion
Topic: Vanguard as IRA Custodian for USian HBPP via ETFs
Replies: 15
Views: 12243

Re: (re)Balancing Act

Any thoughts on how to go forward here?  Should I just put everything in taxable?  Buy PRPFX in taxable and create a 4x25 PP in my IRA with smaller amounts for rebalancing?  Hold just stocks with Vanguard and purchase the other asset classes individually via Treasury Direct, etc.? You can think of ...
by KevinW
Fri Jun 04, 2010 4:17 pm
Forum: Stocks
Topic: International stocks in PP
Replies: 11
Views: 9565

Re: International stocks in PP

I'm not craigr but I'll assume that it's OK for the peanut gallery to pipe up since this is a forum. First, in my opinion international stocks are necessary for a traditional stock/bond index fund portfolio, but are redundant in a Permanent Portfolio.  A conventional stock/bond index fund portfolio ...
by KevinW
Wed Jun 02, 2010 10:36 am
Forum: Permanent Portfolio Discussion
Topic: An Unknown Economic Climate?
Replies: 9
Views: 7568

Re: An Unknown Economic Climate?

So basically you're saying we're in a confused environment which is why the performance of the four assets doesn't quite match HB's model?  I ask because as I listen to his radio show he makes it clear that gold is meant to bolster the portfolio in times of inflation.  Well, inflation has not appea...
by KevinW
Mon May 31, 2010 11:57 pm
Forum: Permanent Portfolio Discussion
Topic: "Half the portfolio has zero expected real return"
Replies: 4
Views: 5591

Re: "Half the portfolio has zero expected real return"

I think the cash and gold provide protection when stocks and bonds are not able to. This protection can add gains to the portfolio. I guess I can relate to the idea of allocating some resources to protection instead of production.  In the business world I see that companies have a lot of resources ...
by KevinW
Mon May 31, 2010 11:34 pm
Forum: Bonds
Topic: Why not zero coupon bonds?
Replies: 19
Views: 13849

Re: Why not zero coupon bonds?

Thanks for digging that up! I'd like to try to understand the "zero will increase in price at a rate roughly equivalent to the interest you would have earned on Treasury bonds" part better.  I noticed you plugged the "Investment Strategy in an Uncertain World" compendium of Harry Browne's Special Re...
by KevinW
Mon May 31, 2010 9:05 pm
Forum: Bonds
Topic: Why not zero coupon bonds?
Replies: 19
Views: 13849

Re: Why not zero coupon bonds?

The tax treatment is a good point.  I am a tax-sheltered investor so I forgot about that.  The convenience factor of the cash coupon payments is valid, too, but that seems less compelling to an accumulator such as myself. I was reminded of zeroes because I was revisiting the possibility of using Van...
by KevinW
Thu May 27, 2010 7:53 pm
Forum: Permanent Portfolio Discussion
Topic: "Half the portfolio has zero expected real return"
Replies: 4
Views: 5591

"Half the portfolio has zero expected real return"

One issue that's holding me back from embracing the Permanent Portfolio completely is my view that both the cash and gold allocations should have an expected yield of 0% over inflation in the long term.  Each is intended to be a store of wealth, rather than a purchase of a productive asset.  Common ...
by KevinW
Thu May 27, 2010 7:39 pm
Forum: Bonds
Topic: Why not zero coupon bonds?
Replies: 19
Views: 13849

Why not zero coupon bonds?

The title says it all: why not use long-duration zero coupon Treasury bonds ("STRIPS") for the bond allocation? I have a hazy recollection that Browne said in one of the radio shows that he analyzed this issue at great length, and concluded that zero-coupon bonds were too volatile .  That explanatio...
by KevinW
Thu May 27, 2010 7:32 pm
Forum: Permanent Portfolio Discussion
Topic: Vanguard as IRA Custodian for USian HBPP via ETFs
Replies: 15
Views: 12243

Re: Vanguard as IRA Custodian for USian HBPP via ETFs

After Vanguard made this announcement I thought about this topic on a hypothetical basis, and came to exactly the same conclusion as you did: VTI, VGSH, TLT, and GLD/IAU.  Total expenses with this approach are reasonable under the $50k threshold and extremely competitive above it. One caveat is that...
by KevinW
Tue May 25, 2010 9:07 pm
Forum: Stocks
Topic: Ok to use VT (world ETF)"
Replies: 13
Views: 38468

Re: Ok to use VT (world ETF)"

My opinion is that VT is an excellent component for a Boglehead style portfolio, but doesn't add much except expenses to a Permanent Portfolio. A pure Boglehead portfolio is built out of Total Stock Market, Total International Stock, and Total Bond.  The international stocks are absolutely necessary...
by KevinW
Sun May 16, 2010 1:42 pm
Forum: Permanent Portfolio Discussion
Topic: On Being a Commissions and Fees Cheapskate
Replies: 3
Views: 4546

Re: On Being a Commissions and Fees Cheapskate

The big one-stop-shop brokerages tend to have commission-free ways of trading in three of the four assets: stocks: an index mutual fund or commission-free ETF bonds: individual treasury bonds cash: money market fund, short term treasury fund, commission-free ETF, or individual bills/CDs This is true...
by KevinW
Sun May 02, 2010 11:59 pm
Forum: Permanent Portfolio Discussion
Topic: The Permanent Portfolio is too complicated!
Replies: 3
Views: 5346

Re: The Permanent Portfolio is too complicated!

I "hack" the system and buy indexes which are essentially derivative of the work of people who do try to invest professionally, and capture their average results without any real effort or meaningful expense on my part. I have mixed feelings about this.  Buying an index fund makes you a free rider ...
by KevinW
Sun May 02, 2010 11:45 pm
Forum: Permanent Portfolio Discussion
Topic: Copyright and the Permanent Portfolio
Replies: 4
Views: 5652

Re: Copyright and the Permanent Portfolio

Disclaimer: since this is a business matter and you're apprehensive, it would be wise to consult an intellectual property attorney, and I'm not one. That being said, the spirit of copyright is that you can copyright written documents and other media, but cannot copyright concepts or procedures.  So ...
by KevinW
Sun May 02, 2010 11:15 pm
Forum: Permanent Portfolio Discussion
Topic: Which Fidelity Funds line up to the Permanent Portfolio asset classes?
Replies: 13
Views: 13315

Re: Which Fidelity Funds line up to the PP asset classes?

Some thoughts from outside the box: 1) Use an individual IRA to hold all the gold.  If you max out a 401(k) and IRA, the IRA will be more than 25% of your contribution limit, so this can work OK. 2) Hold the gold in a taxable account with a very wide rebalancing band.  At 25% plus-or-minus 15%, you ...