Extremely Simple Stock Question

Discussion of the Stock portion of the Permanent Portfolio

Moderator: Global Moderator

User avatar
dualstow
Executive Member
Executive Member
Posts: 10349
Joined: Wed Oct 27, 2010 10:18 am
Contact:

Extremely Simple Stock Question

Post by dualstow » Tue Mar 17, 2020 8:41 pm

{So this is what the forum looks like outside of the Other section, eh? Nice and clean}.

I have some small cap blend and mid cap blend stock index funds that I bought when I got into indexing. I had a slew of individual stocks and I bought those two funds to round things out instead of selling the indies.

For a while I pared the indy stocks but now I actually have more $ in them. They grew and I didn't really curb my habit. I bought more indies, and the new ones weren't necessarily large cap, which makes small- and mid-cap funds unnecessary now.

I started buying VTSAX anyway, with new money and with the proceeds of sales. // Total Stock Market fund.
Started a few years ago.

Things have fallen so hard that these funds now show a gain of about $10K each. Compared to December, that's like a gain of zero.
(It'll be up a bit more tomorrow morning, for sure). My VTSAX is actually a bit in the red, but I'm not rich enough to tax-loss harvest.

I think I can sell them and put all the proceeds into VTSAX, something I've wanted to do for a long time. I didn't want to generate a big tax bill, but I don't think these gains will have much of an effect. I'll finally have a single fund alongside the indy stocks.

Any reason I shouldn't do this?
we have arrived at a situation in which well-intentioned liberal people often can’t bring themselves to say that lawless violence is wrong. —Gary Morson ,WSJ
User avatar
Cortopassi
Executive Member
Executive Member
Posts: 1746
Joined: Mon Feb 24, 2014 2:28 pm
Location: Illinois

Re: Extremely Simple Stock Question

Post by Cortopassi » Tue Mar 17, 2020 9:02 pm

Mentally, having fewer holdings has always been beneficial for me.
User avatar
dualstow
Executive Member
Executive Member
Posts: 10349
Joined: Wed Oct 27, 2010 10:18 am
Contact:

Re: Extremely Simple Stock Question

Post by dualstow » Wed Mar 18, 2020 10:11 am

Thanks. Going to get it done today then.
we have arrived at a situation in which well-intentioned liberal people often can’t bring themselves to say that lawless violence is wrong. —Gary Morson ,WSJ
User avatar
KevinW
Executive Member
Executive Member
Posts: 945
Joined: Sun May 02, 2010 11:01 pm

Re: Extremely Simple Stock Question

Post by KevinW » Wed Mar 18, 2020 9:14 pm

Cortopassi wrote:
Tue Mar 17, 2020 9:02 pm
Mentally, having fewer holdings has always been beneficial for me.
+1, seems like a good opportunity to consolidate and simplify, with a low tax bill.
User avatar
dualstow
Executive Member
Executive Member
Posts: 10349
Joined: Wed Oct 27, 2010 10:18 am
Contact:

Re: Extremely Simple Stock Question

Post by dualstow » Wed Mar 18, 2020 10:18 pm

I did the small caps today. Mid caps tomorrow. Feels good.
we have arrived at a situation in which well-intentioned liberal people often can’t bring themselves to say that lawless violence is wrong. —Gary Morson ,WSJ
jalanlong
Full Member
Full Member
Posts: 82
Joined: Mon Jul 01, 2019 7:30 am

Re: Extremely Simple Stock Question

Post by jalanlong » Thu Mar 19, 2020 8:07 pm

I am also a minimalist and like to keep things simple. If my life savings is $500k, would you guys feel comfortable having it all in 4 ETFs? Say VTI, TLT, AAAU and GBIL?
User avatar
dualstow
Executive Member
Executive Member
Posts: 10349
Joined: Wed Oct 27, 2010 10:18 am
Contact:

Re: Extremely Simple Stock Question

Post by dualstow » Thu Mar 19, 2020 8:12 pm

^ I'd never heard of GBIL ^
For anyone else who hasn't ⇢ https://www.gsam.com/content/gsam/us/en ... r-etf.html
we have arrived at a situation in which well-intentioned liberal people often can’t bring themselves to say that lawless violence is wrong. —Gary Morson ,WSJ
User avatar
Kbg
Executive Member
Executive Member
Posts: 1544
Joined: Fri May 23, 2014 4:18 pm

Re: Extremely Simple Stock Question

Post by Kbg » Sat Apr 11, 2020 9:29 am

Yes I would feel comfortable with four ETFs. If you are serious about safety in the modern world and modern markets then perhaps something like this:

VTI
SCHQ
IAU
GBIL

This gives you low cost ETFs with four systemically large financial companies. If you like other ETFs for the four components then just switch the ETF companies. The main points being large systemically important and low cost. Don’t get distracted by things that don’t really matter.
doodle
Executive Member
Executive Member
Posts: 2797
Joined: Fri Feb 11, 2011 2:17 pm

Re: Extremely Simple Stock Question

Post by doodle » Sat Apr 11, 2020 10:30 am

The only thing I do that complicates things a bit is keep some of each of the four assets in taxable and non taxable accounts so that depending on what needs to be rebalanced I can either tax loss harvest or sell without paying capital gains...especially gold ETFs which get hit with high long term collectible capital gains tax.
User avatar
jhogue
Executive Member
Executive Member
Posts: 495
Joined: Wed Jun 28, 2017 10:47 am

Re: Extremely Simple Stock Question

Post by jhogue » Sat Apr 11, 2020 10:52 am

Kbg wrote:
Sat Apr 11, 2020 9:29 am
Yes I would feel comfortable with four ETFs. If you are serious about safety in the modern world and modern markets then perhaps something like this:

VTI
SCHQ
IAU
GBIL

This gives you low cost ETFs with four systemically large financial companies. If you like other ETFs for the four components then just switch the ETF companies. The main points being large systemically important and low cost. Don’t get distracted by things that don’t really matter.
I like the idea of simplifying with ETFs, especially when I get too old to manage my assets.

The question, that I have, however, is whether you would combine all for ETFs into a single brokerage account. Or do you need to have 4 accounts in 4 s"systemically important" firms?
“Groucho Marx wrote:
A stock trader asked him, "Groucho, where do you put all your money?" Groucho was said to have replied, "In Treasury bonds", and the trader said, "You can't make much money on those." Groucho said, "You can if you have enough of them!"
User avatar
dualstow
Executive Member
Executive Member
Posts: 10349
Joined: Wed Oct 27, 2010 10:18 am
Contact:

Re: Extremely Simple Stock Question

Post by dualstow » Sat Apr 11, 2020 11:01 am

jhogue wrote:
Sat Apr 11, 2020 10:52 am
Or do you need to have 4 accounts in 4 s"systemically important" firms?
That doesn't sound much like simplifying. O0
we have arrived at a situation in which well-intentioned liberal people often can’t bring themselves to say that lawless violence is wrong. —Gary Morson ,WSJ
User avatar
Smith1776
Executive Member
Executive Member
Posts: 1241
Joined: Fri Apr 21, 2017 6:01 pm

Re: Extremely Simple Stock Question

Post by Smith1776 » Sat Apr 11, 2020 2:05 pm

The idea of different accounts wasn't lost on Browne. In Fail-Safe Investing, Browne recommended splitting up cash between 3 different FDIC insured accounts for instance. He also said the stock portion of your portfolio could be prudently split between 3 different funds.

But different brokerage accounts -- hmmmm, I don't recall off the top of my head any writings about that. I think it's safe to say he probably wouldn't think it was a bad idea.

Be that as it may, I have all my investment funds at a single broker. All my cash is with a single bank.

My biggest diversifier against institutional risk is gold. Probably will be some cryptocurrency in the future too.
Check out the Goldsmith PP: https://www.gyroscopicinvesting.com/forum/viewtopic.php?f=1&t=9613
The government causing inflation and giving us TIPS is like breaking our legs and giving us crutches.
Broscience -- Word of mouth knowledge passed off as fact, primarily among bodybuilders + weightlifters.
Lily is the official mascot of the Gyroscopic Investing forum.
Post Reply