How long have you been running the PP?

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How long have you been running the PP?

< 1 year
24
60%
1-2 years
7
18%
2-3 years
1
3%
4-5 years
2
5%
5+ years
1
3%
haven't pulled the trigger
5
13%
 
Total votes: 40
murphy_p_t
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How long have you been running the PP?

Post by murphy_p_t » Thu Apr 07, 2011 2:14 am

I'm curious how long folks have been running the PP. I started learning about it maybe 1.5 years ago, but only pulled the trigger around the new year (3 months ago). I'm curious how long others have allocated their funds as a PP.
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bigamish
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Re: How long have you been running the PP?

Post by bigamish » Thu Apr 07, 2011 6:31 am

I'm in the exact same boat as you Murphy. 

In my case, I am a first time "active" investor whose previous investing experience was simply throwing money into a set 403b TIAA-CREF retirement plan.  Having recently set early semi-retirement in 10 years as a personal goal, I started reading up about the PP last August, & implemented it on Jan 1.  The hardest psychological part for me at the time was coping with what I thought was the high price of gold when I first bought in.  Observing the interactions among the PP allocations over the last several months, as well as observing recent gold trends, has confirmed to me that Harry Browne knew what he was talking about.  Suddenly the gold I begrudgingly paid $1385-1420/oz for in January seems like a bargain.  Of course tomorrow the bottom could drop out, but today I feel warm & fuzzy knowing that if that does occur, my other PP components should protect me.
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Re: How long have you been running the PP?

Post by travelingheelfan » Thu Apr 07, 2011 7:00 am

I've known about the PP since the late 90's.  However back then, if you weren't in stocks 100% or 200% if you had a margin account most people considered you to be a fool.  A co-worker of mine back then was on a three year retirement plan.  That didn't turn out to well. How times have changed.  Even though I had known about the PP for 10+ years I didn't start implementing the PP until early 2009.  I saw how the portfolio responded in 2008 and that sealed the deal for me.  I believe that once you get the idea of how the portfolio works, there's no better risk/return solution.  Think about it, you don't have to be glued to a computer screen or CNBC all day, you don't have to worry about a "flash crash", you don't have to rely on some "expert", you sleep better at night (at least I do), and you get more time to do more important things.  What more could you ask for? 
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MediumTex
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Re: How long have you been running the PP?

Post by MediumTex » Thu Apr 07, 2011 8:17 am

Three years.
Only strength can cooperate. Weakness can only beg.
-Dwight Eisenhower
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Pkg Man
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Re: How long have you been running the PP?

Post by Pkg Man » Thu Apr 07, 2011 10:03 am

One year this month. I began with about half my assets and later moved more into the PP.
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l82start
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Re: How long have you been running the PP?

Post by l82start » Thu Apr 07, 2011 12:43 pm

only fully starting Jan this year, prior to that i had a boggle head style portfolio,  stocks, bonds, emergency cash, + gold in a near 25% split. when new money and Roth IRA space became available at the beginning of this year i swapped out the total bond market for some LT and rebalanced everything to 25%.
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Re: How long have you been running the PP?

Post by HB Reader » Thu Apr 07, 2011 9:41 pm

In about 1984 I started using PRPFX as the core position in my portfolio.  I supplemented it with a few gold and silver coins and a couple of 30 year $1,000 Treasury bearer bonds held in a safe deposit box.  By core I mean about 50% of my investments.  Holding PRPFX was difficult during the late 1990's when it seemed like everyone was getting rich in tech stocks. 

Upon retiring in 2003, I went to the straight DIY 4x25% PP with about 50% of our investments.  It is currently about 60% of our investments.

A bit of trivia:  I purchased the bearer bonds at a Treasury auction in September 1981.  They had a coupon rate of 13.875% and were the next to the last issue ever of bearer bonds by the Treasury.  Clipping and cashing in the semi-annual coupons was a big hassle (my bank levied a $5 per coupon service charge) so I converted them to registered form in 1985.  I finally sold them in 1986.  I sometimes wish I had held on to one of the bearer bonds with all the coupons attached.  It would be quite a collectible today -- basically a $5,162.50 bill.                 
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Re: How long have you been running the PP?

Post by dualstow » Thu Apr 07, 2011 9:56 pm

Interesting, HB Reader.
I haven't heard bearer bonds mentioned since watching the Jodie Foster film, "The Panic Room."
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Re: How long have you been running the PP?

Post by MediumTex » Thu Apr 07, 2011 10:04 pm

HB Reader,

I really enjoy and appreciate your long exposure to all things Harry Browne.

It's nice to know that Browne's ideas don't get tired from long usage.
Only strength can cooperate. Weakness can only beg.
-Dwight Eisenhower
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Re: How long have you been running the PP?

Post by HB Reader » Thu Apr 07, 2011 10:17 pm

Yeah, Treasury stopped issuing bearer bonds in 1982, mainly because they were popular with tax evaders.  I think the Secret Service at Treasury also welcomed having one less item to protect from counterfeiters.  The bond and individual coupons were almost like cash.  Counterfeit bearer bonds (corporate, as well as government) were sometimes used as collateral for bank loans, especially in Europe.  Just by the nature of the transactions, the fraud sometimes didn't come to light for many years.  I think the last 30 year bearer bonds the Treasury issued had coupon rates of 14%.
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Re: How long have you been running the PP?

Post by HB Reader » Thu Apr 07, 2011 10:50 pm

MediumTex wrote:
I really enjoy and appreciate your long exposure to all things Harry Browne.

It's nice to know that Browne's ideas don't get tired from long usage.

I used to really look forward to getting his newsletter. 

I didn't follow his political writings nearly as closely.  Interestingly, in my 1974 reprint addition of his 1970 "How You Can Profit From the Coming Devaluation" he had a list of 22 common questions he had received in letters from readers in the first couple of years after the book came out.  The last question was, "What would you do if you were the President?"  His answer was, "I'd quit."  He had obviously changed his mind about that by 1996 when he ran on the Libertarian ticket. 
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AdamA
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Re: How long have you been running the PP?

Post by AdamA » Thu Apr 07, 2011 11:20 pm

HB Reader wrote: The last question was, "What would you do if you were the President?"  His answer was, "I'd quit." 
To me, Libertarian politics are kind of like intraoffice politics. 

No one likes their boss, and everyone can think of a zillion things they'd do different if they were in charge.  Then, one day one of these critics get promoted and they discover how hard it is to be the head guy. 

It's easy to talk about cutting government programs, but I think if we actually implemented some of these shrink-government-policies as purely and abruptly as suggested by many a Libertarian, we would have big problems. 

As dysfunctional as it seems at times, I think it actually may be healthy that our government is unable to make extreme changes in an abrupt manner (although, some may argue that we are able to do things plenty quickly--ie Libya). 
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