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New investments?
Posted: Wed Oct 09, 2019 7:20 pm
by vnatale
This may have been covered in Craig and Tex's book and I am just forgetting but.....how do you allocate new investments?
Assuming one starts of at each investment at 25%, it is quickly going to drift away from that with one or more higher and one or more lower.
I can see allocating the investments one of two ways.
1) Same 25% to each. Probably not.
2) Allocate in some way to the laggards so as to get as many of them as close as possible to 25%. This then would somewhat delay reaching the 15%/35% bands?
Thanks
Vinny
Re: New investments?
Posted: Wed Oct 09, 2019 9:04 pm
by jacksonm2
I'm retired so I don't have a lot to think about in regards to "New Investments". Just starting my SS benefits this year after delaying to age 70 and I have been running a bit of a surplus lately so it is something to think about now. My wife still works and her 401k investments are apportioned each pay check as best we can figure according to the PP strategy and what is available in her plan.
My thinking on new investments however, is pretty much the same as it was when I first read HB's book on the subject. I put all the new money in cash and wait until the end of the year at which time I distribute the excess cash, if any, to the other sectors for the purpose of re-balancing. If memory serves me correctly, and it may or may not, I thought that was what HB advised.
I tend to think however, that in the long run it probably doesn't matter very much in the short term what you do with new investments as long as you stick to the strategy.
Re: New investments?
Posted: Wed Oct 09, 2019 9:20 pm
by vnatale
I had not remembered what Harry Browne's book had stated on the subject!
Vinny
jacksonm2 wrote: ↑Wed Oct 09, 2019 9:04 pm
I'm retired so I don't have a lot to think about in regards to "New Investments". Just starting my SS benefits this year after delaying to age 70 and I have been running a bit of a surplus lately so it is something to think about now. My wife still works and her 401k investments are apportioned each pay check as best we can figure according to the PP strategy and what is available in her plan.
My thinking on new investments however, is pretty much the same as it was when I first read HB's book on the subject. I put all the new money in cash and wait until the end of the year at which time I distribute the excess cash, if any, to the other sectors for the purpose of re-balancing. If memory serves me correctly, and it may or may not, I thought that was what HB advised.
I tend to think however, that in the long run it probably doesn't matter very much in the short term what you do with new investments as long as you stick to the strategy.