How do you invest the Cash portion?

Discussion of the Cash portion of the Permanent Portfolio

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ochotona
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Re: How do you invest the Cash portion?

Post by ochotona » Mon Jul 08, 2019 11:19 am

If I were younger, say in my 40s, I'd be buying Series EE Savings Bonds. If you hold for twenty years, they double in value, for a CAGR of 3.5%. But you have to hodl. Being in my late 50s now, I'm not sure I want to mess with TreasuryDirect when I'm in my late 70s. By that time I hope to be in HBPP autopilot Nirvana with my daughter doing the annual portfolio look.
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Kbg
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Re: How do you invest the Cash portion?

Post by Kbg » Tue Jul 09, 2019 9:23 am

I think "cash" needs to be quickly available. What is quick enough is up to the individual. While I have lots of T-Bills I manage monthly on T-Direct, it's also lots of work. I think at some point errors from mistakes resulting from an aging brain could exceed any advantage of DIY. Small bits of cash lying around from the discount to the maturity value of the bond are also a pain in the butt and means I'm not investing the "max" I could be.

Broken record spins again...simplicity is of value and perhaps worth paying for.
pmward
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Re: How do you invest the Cash portion?

Post by pmward » Tue Jul 09, 2019 9:24 am

ochotona wrote:
Mon Jul 08, 2019 11:19 am
If I were younger, say in my 40s, I'd be buying Series EE Savings Bonds. If you hold for twenty years, they double in value, for a CAGR of 3.5%. But you have to hodl. Being in my late 50s now, I'm not sure I want to mess with TreasuryDirect when I'm in my late 70s. By that time I hope to be in HBPP autopilot Nirvana with my daughter doing the annual portfolio look.
There's good likelihood you will wind up winning anyways. 3.5% might sound good in todays world, but who knows what the next 20 years may bring. The average of rolling T-Bills very well could destroy that 3.5% over 20 years.
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