80-90% of your Total Savings in PP

frugal · Post by **frugal** » Sun Nov 18, 2012 4:15 pm

Hello pp friends

How much % of your savings from all your life you put in PP?

First I was thinking to do:

50% saving account, cash deposit, here the risk is bankrupcy of Portugal or Bank - I can get 4%/year interest

15% on PIMCO BOND FUNDS, to get average 6-7%/year with max DD of 20%

10% on Variable Portfolio, with REIT, Comodities, Emerging Markets, Silver and other different assets from pp, to get 12%/year and max DD of 30%

35% on EU PP, hoping to get 7%/year and max DD of 9%

Now I am feeling more confident in the method and i am thinking to increase the EU PP percentage.

What do you think?

Thank you and best regards.

AdamA · Post by **AdamA** » Sun Nov 18, 2012 5:00 pm

frugal wrote:
How much % of your savings from all your life you put in PP?

All of it.

Greg · Post by **Greg** » Sun Nov 18, 2012 5:11 pm

AdamA wrote:
frugal wrote:
How much % of your savings from all your life you put in PP?

All of it.

95% of it (trying to use Thrift Savings Plan (TSP) as much as possible for the PP even though it isn't the greatest on choices). I have some stocks and other non-PP items as well.

KevinW · Post by **KevinW** » Sun Nov 18, 2012 5:35 pm

I keep a few thousand in our operating checking account as "slush." The rest is in PPs.

Pointedstick · Post by **Pointedstick** » Sun Nov 18, 2012 5:39 pm

KevinW wrote: I keep a few thousand in our operating checking account as "slush." The rest is in PPs.

Same here, with the addition of a few savings accounts for known expenses.

Gumby · Post by **Gumby** » Sun Nov 18, 2012 5:48 pm

Pointedstick wrote:
KevinW wrote: I keep a few thousand in our operating checking account as "slush." The rest is in PPs.
Same here, with the addition of a few savings accounts for known expenses.

100% of my wealth is in the PP. I just include my small checking "slush" as part of my 25% cash.

BRESLOW · Post by **BRESLOW** » Sun Nov 18, 2012 5:49 pm

About 50%. Balance in mostly bond funds with Vanguard and Fidelity

melveyr · Post by **melveyr** » Sun Nov 18, 2012 6:28 pm

My "savings portfolio" is currently 100% PP.

Once I graduate from college I will probably have a VP because of limited 401(k) with my future employer. I want to max out my accounts and I don't mind tilting my overall investment plan towards equities to do so. Additionally, The biggest risk of a PP is bailing out when your friends are making a killing in equities, so have some equities on the side to be part of the "herd" probably has some psychological risk reduction properties.

Post by **l82start** » Sun Nov 18, 2012 6:57 pm

tough to call for me because i don't keep a count or track the VP, so 100 % of savings in my PP, and a VP invested in a little gold and silver bought almost 20 years ago,
if i ever have the opportunity to make a large enough one time contribution to the PP i might roll the gold part of the VP into the PP, but my mind kinda boggles at how to make accounting for it work in my spread sheet...

Lone Wolf · Post by **Lone Wolf** » Mon Nov 19, 2012 9:02 am

I'm just under 96%, which is as "all in" as I can manage. (For simplicity, I include things like my checking account as cash.) There are always a few pieces that don't quite fit, but that's okay. I didn't find a good way to build a PP for 529 college savings plans, for example, so went with a 50/50 total stock / total bond portfolio there.

It's a different answer if you look at home equity, of course.

Early Cuyler · Post by **Early Cuyler** » Mon Nov 19, 2012 11:21 am

Substantially all of my investments are in the PP.

Bean · Post by **Bean** » Mon Nov 19, 2012 1:06 pm

Net Worth Percentages:

25% - Taxable or PP, This is growing very fast as I worry more about the present that the future these days.
50% - Roth IRA and 401K (80% VT / 20% BND) Having trouble letting go of my Boglehead roots.
25% - Real Estate, Net Value (House and Bachelor pad condo I have rented out) Got to love that condo I should have never bought

I think a lot of it comes down to comfort with net worth volatility and the realization that stocks don't go up every year. The only reason my tax advantages haven't been transitioned to PP is because my projected value at retirement should allow me to never have to touch principle.

notsheigetz · Post by **notsheigetz** » Mon Nov 19, 2012 4:48 pm

I'm ALL in right down to the cash in my checking account - or at least I was back in January when I re-balanced and will be again next January.

edsanville · Post by **edsanville** » Sat Dec 08, 2012 12:03 am

100% in the PP since May 7, 2012. This includes a large checking account balance as cash.

k9 · Post by k9 » Sat Dec 08, 2012 7:44 am

About 50%, I guess.

Ralphy · Post by **Ralphy** » Sat Dec 08, 2012 7:51 am

About 90%. I have an HSA in cash that will probably become a separate PP in a year or two when the balance is a little bigger.

notsheigetz · Post by **notsheigetz** » Sat Dec 08, 2012 12:27 pm

I think HB said the PP was the place to put all the money you can't afford to lose so at this point in time that translates into 100% of mine.

I also keep a stash in my checking account but I count it as PP cash when I do my figuring.

HB Reader · Post by **HB Reader** » Mon Dec 10, 2012 12:55 pm

About 2/3 in PP and 1/3 in VP.

6 Iron · Post by **6 Iron** » Mon Dec 10, 2012 9:54 pm

95%, excluding real estate.

frugal · Post by **frugal** » Tue Dec 11, 2012 3:53 am

Hello,

so for 10.000 USD or 10.000.000 USD

70 to 80% should be in HBPP

Is this right?

Thanks

Pointedstick · Post by **Pointedstick** » Tue Dec 11, 2012 8:20 am

The optimal percentage of one's assets to put in a PP is a very personal decision, affected by one's level of risk tolerance and faith in the portfolio's asset allocation.

A wealthy risk taker might put 50% in the HBPP and use the remainder to speculate on stocks and real estate; a more conservative wealthy investor might put 100% in to minimize losses. Someone uncomfortable with the HBPP might ease into it by gradually increasing the percentage of their assets they have in it, and observing its performance relative to the rest of their portfolio. And so on and so forth.

So you need to ask yourself:

1. How much can I afford to lose?

2. How much faith to I have in the HBPP?

frugal · Post by **frugal** » Tue Dec 11, 2012 8:36 am

Hi,

But HBPP had almost 20% max DD

How can we say that is for money I can't afford to lose? $:-\$

Regards.

Pointedstick · Post by **Pointedstick** » Tue Dec 11, 2012 8:44 am

frugal wrote: Hi,

But HBPP had almost 20% max DD

How can we say that is for money I can't afford to lose? $:-\$

Because everything else was losing much worse. The HBPP is a low-volatility portfolio, not a zero-volatility one. You have to ask yourself: what would have avoided that 20% DD? And would that alternative portfolio been able to profit as much from the boom that followed it?

Every portfolio has risks. Even a supposedly safe approach of putting your money in short-term bonds can lose to inflation. Money in a commercial bank can also lose to inflation, and it can become inaccessible in the event of fraud. And stocks, gold, bonds, real estate, and commodities have all experienced much, much bigger DDs than 20%.

If you go too conservative, you'll get eaten by inflation; too agressive and you can experience gut-wrenching swings. I find that the HBPP offers a good compromise between volatility and performance.

Thomas Hoog · Post by **Thomas Hoog** » Wed Dec 12, 2012 6:37 am

95 %
Real estate not included
5 % cash separate for unseen risks; broken car, washing machine etc..

frugal · Post by **frugal** » Wed Dec 12, 2012 8:03 am

For me it is a bit strange how someone can INVEST almost ALL his savings in a PP.

I am so used to CD's that covers the inflation. On your countries, as your CD's don't cover INFLATION, you had to discover another strategies earlier...

Please advice.

Thanks

80-90% of your Total Savings in PP

80-90% of your Total Savings in PP

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