Moving into the PP

General Discussion on the Permanent Portfolio Strategy

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dualstow
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Re: Moving into the PP

Post by dualstow »

pmward wrote: Tue May 07, 2019 1:31 pm I buy the treasuries myself
...
I just buy all new at auction.
Me, too.
With a few EDV shares in a Roth IRA.
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Kbg
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Re: Moving into the PP

Post by Kbg »

ppnewbie wrote: Tue May 07, 2019 1:20 pm
sophie wrote: Mon May 06, 2019 8:26 pm pmward, you're right about EDV having more oomph than TLT, but...beware holding it in a taxable account. It's had some giant December payouts in the past. If you instead buy a zero coupon Treasury directly, realize that you owe taxes on the interest as it accrues, but can't access said interest until you sell.

ppnewbie, if you're nearing retirement maybe you can also consider how complex vs simple you want your portfolio to be? That's a consideration too, that may eventually be more important than optimizing CAGR. Also, all the more reason to avoid selling appreciated stock shares, if you expect your tax bracket to go down to 12%-land in the near future.
Quick question about TLT (of possibly EDV). Do you just buy one of those and just rebalance as the PP prescribes. How does TLT replicate my buying 30 year treasury bonds and selling after 10 years (hope I have that correct) during the periodic rebalance.
TLT is managed to basically do that. You should go to the iShares website and read up on their various UST funds.
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