Advice before deployment
Posted: Mon Oct 04, 2010 9:42 pm
Thanks many times over to CraigR for creating and administering this site. Thanks as well to Clive, MediumTex and all other contributors for your posts and comments. This is truly an invaluable work of generosity.
Thanks in part to this site, I am preparing to take back the management of my own investments after years of procrastinating. Exciting but intimidating! Shown are drafts of both a PP and a VP that I would appreciate readers’ feedback on. Both portfolios will likely be deployed by year-end. The VP will then be shifted to a more reasonable 10-15% cash position by 2013, dollar cost averaging into stocks and precious metals. As I become more comfortable with this, I may move money from VP to PP (but not vice versa, as per HB's recommendation).
VEHICLE TAXABLE TAX DEFERRED
PERMANENT
Cash SHV 4
SHY 5
I-Bonds 1
LT Bonds TLT 10
Stocks VTI 10
Gold IAU 2
PHYS 2
Bullion 6
VARIABLE
Cash Bank, US 10
Bank, Canada 7
VMSXX (Tax Ex MM) 4
Tax Ex ST Bond ((VSWUX) 3
Metals CEF 2
Silver Bullion 2
Stocks VEU (International) 6
VSS (Int SC) 2
AAXJ (Asia) 2
XOP (Energy) 2
Productive Land 20
Questions:
1. Is the PP pure enough in form? Others on the site have written about the substitution of TLT for actual treasuries. Not as sure with the substitution of IAU and PHYS for some tangible bullion, but this provides more convenient liquidity as well as the tax efficiency of PHYS (as well as CEF).
2. I only have 17% of portfolio in tax-deferred accounts. Are the assets divided appropriately to minimize taxes while still allowing for rebalancing?
3. Any problems or better suggestions for the ETFs, funds and other vehicles I have chosen (in either account)?
I hope that this is of some help to others. Thanks for any feedback provided.
Thanks in part to this site, I am preparing to take back the management of my own investments after years of procrastinating. Exciting but intimidating! Shown are drafts of both a PP and a VP that I would appreciate readers’ feedback on. Both portfolios will likely be deployed by year-end. The VP will then be shifted to a more reasonable 10-15% cash position by 2013, dollar cost averaging into stocks and precious metals. As I become more comfortable with this, I may move money from VP to PP (but not vice versa, as per HB's recommendation).
VEHICLE TAXABLE TAX DEFERRED
PERMANENT
Cash SHV 4
SHY 5
I-Bonds 1
LT Bonds TLT 10
Stocks VTI 10
Gold IAU 2
PHYS 2
Bullion 6
VARIABLE
Cash Bank, US 10
Bank, Canada 7
VMSXX (Tax Ex MM) 4
Tax Ex ST Bond ((VSWUX) 3
Metals CEF 2
Silver Bullion 2
Stocks VEU (International) 6
VSS (Int SC) 2
AAXJ (Asia) 2
XOP (Energy) 2
Productive Land 20
Questions:
1. Is the PP pure enough in form? Others on the site have written about the substitution of TLT for actual treasuries. Not as sure with the substitution of IAU and PHYS for some tangible bullion, but this provides more convenient liquidity as well as the tax efficiency of PHYS (as well as CEF).
2. I only have 17% of portfolio in tax-deferred accounts. Are the assets divided appropriately to minimize taxes while still allowing for rebalancing?
3. Any problems or better suggestions for the ETFs, funds and other vehicles I have chosen (in either account)?
I hope that this is of some help to others. Thanks for any feedback provided.