I agree that cash is one of the best aspects of the PP, and one should take care to understand that thoroughly before letting it go.
For a retirement account that will definitely not be touched for at least 10 years, dialing down cash might be a reasonable decision. The hitch is that you don't really KNOW that you won't touch it for 10 years, do you? Job loss events happen, and most likely during the very type of economic environment in which cash is the most precious.
Here's another option: design your PP so that it sprawls over all your accounts, including 401K and taxable. Within that structure, you can then keep approximately equal proportions of gold, stocks, and bonds in each account, while cash is distributed unevenly, e.g. keep very little in the 401K and overweight it in taxable. Just be sure the total amount of cash is in keeping with the overall allocation.
BTW I am insanely jealous of Xan's 401K, which apparently allows him to invest in gold.
PP in IRA
Moderator: Global Moderator
