Where to Start Out...

General Discussion on the Permanent Portfolio Strategy

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Kbg
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Joined: Fri May 23, 2014 4:18 pm

Re: Where to Start Out...

Post by Kbg » Thu Feb 21, 2019 9:46 pm

Dieter wrote:
Thu Feb 21, 2019 10:21 am
Kbg wrote:
Thu Feb 21, 2019 9:06 am
Dieter wrote:
Wed Feb 20, 2019 9:02 pm


Note that as KGB says, REIT is not gold. Would be more a 50/59 stock / bond portfolio. Fine if that is what you want with a huge REIT tilt. I guess I understand why no Gold in 401(k)s. I do wish more had Treasury bond options.....
Actually, if you look under the hood VTB is like 60%+ US treasuries IIRC. In the backtesting I've done a total bond fund vs. LTTs at the end of the day ends up in about the same place performance wise. You do lose some of the negative correlation to stocks when the market tanks hard/panics. But if you can ride that out, the arrival point at the end of the journey is going to be very close either way.
Did you just replace LTT with total bond, or LTT+cash to TBM to keep the duration closer to LTT+ Cash? (I think usually see 50% TBM in place of LTT + Cash.
I assume this is a question to me...Total Bond & LTTs perform very similarly over the long haul, not over the short haul. So, total bond only as you have a bunch of ST bonds in the TB mix as well (govt and commercial).
KaizenKings
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Re: Where to Start Out...

Post by KaizenKings » Thu Jan 02, 2020 5:42 pm

Took me about a year to wrap myself around this!!!

YEESHHH!!!

I am definitely not an expert at this stuff but I keep returning, learning, and will being to pull the trigger.

Ok NOW I understand why you can't go all in and just pick one portion of the PP! Thank you all for your insight! Thank you! Thank you!

Here are my choices:

20% Stocks: 95% VTI and 5% International VGTSX
20% Bonds: TLT. I NEED SOME HELP HERE: Sounds crazy, but I do not understand "rebalancing every 5-10 years? What does that mean? How do I do it? Also, I don't get how to do the whole Treasury Direct stuff? I tried researching it on the forum and it made me more confused. Is there a thread someone can guide me to?
20% PM: I own some physical silver and gold ounces and am slowly starting to stack. I will also occasionally invest in IAU/SGOL/PSLV
20% Cash: I NEED HELP Here Please: Which one do I pick and why? SHY? SCHO? SHV?
20% Misc: Will invest in some digital currency, tech stock, AI stocks, Cannibis stocks. My picks: GBTC (Bitcoin ETF), ETFMG (Marijuana ETF), GrubHub, ARKQ (AI chip stock), Uber stock, and IQ stock. Digital coins I will purchase: XRP, ETH, LTC, BNB, Link


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I currently have about $20,000 saved in an 1987 American Funds 2050 Target Date R6 through my job that matches.

Breakdown: Employee PreTax: $6,800. Employer Matching: $4,500. ROTH: $8,000
I take about 6% of every paycheck and pay it towards my 401K Roth through my job.
I ATTACHED THE FUND INFO TO THIS POST IN A PDF
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Kbg
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Re: Where to Start Out...

Post by Kbg » Thu Jan 02, 2020 6:44 pm

Instead of TLT go with VGLT. Go with VGSH or SCHO for cash. These are all more cost effective.

You will need to figure out a rebalancing strategy...5-10 years probably isn't it.

Throw the bottom 20% into your "VP."

For the other 80%...consider it 25% to each asset class and either A) rebalance annually or B) when one of them gets to either 15% or 35% of the portfolio.

If you are still adding $$$ to the above 80%, then there are several threads for that. The simplest is to just add to the lowest percentage asset.
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