Adding money to PP
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Re: Adding money to PP
Contribute to gold and LTTs, trying to make them both as even as possible relative to each other (ie they are the same % of your PP). If, however, adding the full $5500 to gold would still make it lower as a % of your PP than LTTs, then just contribute the entire thing to gold.
Re: Adding money to PP
I like to add evenly across the four categories. This eliminates the chance of picking the wrong asset and, I believe, has been shown to yield the greatest return over time.
Re: Adding money to PP
Ad Orientem wrote: Cash.
Why Cash? Isn't it market timing?dualstow wrote: Cash cash cash.
When to add to 4 categories ? By the end of the year?
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Re: Adding money to PP
I'd just add it it to the lagging asset. That way you keep your transaction costs as low as possible by reducing the chance you have to rebalance.
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Re: Adding money to PP
Am I wrong in thinking the 15/35% rebalancing bands is what gives the PP the ability to eliminate the danger of market timing? It doesn't make sense to change your bands percentages when adding new money. If, for example, stocks are 29%, bonds 22%, gold 21%, and cash 28% I would just add new money at the percentages to each of the assets. If you did anything different the 15/35 would be reached at a different time.
Last edited by craigr on Tue Jul 30, 2013 7:59 am, edited 1 time in total.
- dualstow
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Re: Adding money to PP
Maybe it depends on the situation. If my gold share were down to 20%, I'd be tempted to put new money into it rather than into cash, and rather than waiting for 15%. But, with all my assets floating between, say, 23% and 27%, I'd put everything new into cash and wait for a band to be reached.
If all assets were depressed but fairly equal and I came into some new money, I'd probably buy all the assets.
Seems like common sense.
If all assets were depressed but fairly equal and I came into some new money, I'd probably buy all the assets.
Seems like common sense.
Re: Adding money to PP
My actual Percent is:
St 27,52%
Lb 26,00%
Ch 26,50%
Gd 19,97%
any other opinion?
The new money represents 20% of the existing PP
St 27,52%
Lb 26,00%
Ch 26,50%
Gd 19,97%
any other opinion?
The new money represents 20% of the existing PP
Live healthy, live actively and live life!
- buddtholomew
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Re: Adding money to PP
If I was adding 20% to the PP, I would restore all assets to 4x25 given the minor drift you have in the current allocation (especially in a taxable account).frugal wrote: My actual Percent is:
St 27,52%
Lb 26,00%
Ch 26,50%
Gd 19,97%
any other opinion?
The new money represents 20% of the existing PP
"The first principle is that you must not fool yourself and you are the easiest person to fool" --Feynman.
Re: Adding money to PP
Maybe I prefer to do 4x25 again...
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- buddtholomew
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Re: Adding money to PP
Makes sense to me.
"The first principle is that you must not fool yourself and you are the easiest person to fool" --Feynman.