Setting up an ETF PP

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portart
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Setting up an ETF PP

Post by portart » Thu Nov 28, 2013 8:51 am

I sold 800k of PRPFX today and need to allocate it Friday morning. I am keeping some in case we get back into inflation which would make the fund rock, assuming gold doesn't continue to tank. The expenses are too high in PRPFX for the lack of movement in the fund for the last three years. If I am not going to make money, I might as well consider a gain in savings of costs like a gain by using ETFs. Any thoughts how your would break down an $800,000 PP in today's ETF world going forward? Which ones and how much in each? Thanks so much!
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Ad Orientem
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Re: Setting up an ETF PP

Post by Ad Orientem » Thu Nov 28, 2013 8:58 am

$800k in a traditional (level I) 4x25% HBPP...

$200k in TLT
$200k in SHV or SCHO (depending on risk tolerances for cash)
$200k in IAU
$200k in VTI (VT is an acceptable alternative if you want a little international exposure)

Reinvest dividends unless the account is taxable, in which case I would put them in the cash fund.
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Re: Setting up an ETF PP

Post by portart » Thu Nov 28, 2013 9:03 am

Thank you… If you want to hedge your gold with some Bitcoins, is there a way to do that? This is in case gold tanks as an alternate currency for bit coins.
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Ad Orientem
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Re: Setting up an ETF PP

Post by Ad Orientem » Thu Nov 28, 2013 9:17 am

portart wrote: Thank you… If you want to hedge your gold with some Bitcoins, is there a way to do that? This is in case gold tanks as an alternate currency for bit coins.
Bitcoins are strictly a Variable Portfolio play. I would not in any way put them on the same level as gold. Remember gold is there to hedge against severe inflation or an SHTF type disaster where you may need hard assets. Gold has been a universally accepted store of value for around 6,000 years. I don't think Bitcoins have that pedigree. Further... can you carry Bitcoins around on your person?
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Ad Orientem
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Re: Setting up an ETF PP

Post by Ad Orientem » Thu Nov 28, 2013 9:20 am

P.S. to my last... while I am fine with ETF's for most of the PP assets I really do encourage people to hold at least some of their gold in physical form. That said IAU is probably your best choice if you want to go with an ETF.
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KevinW
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Re: Setting up an ETF PP

Post by KevinW » Thu Nov 28, 2013 11:24 am

That ETF list looks pretty good, although it's worrisome that 75% of the assets are all at iShares, and I'd definitely use VTI and not VT. So my recommendation is: VTI, TLT, IAU, BIL . Also consider holding some physical gold.
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Re: Setting up an ETF PP

Post by Ad Orientem » Thu Nov 28, 2013 12:31 pm

KevinW wrote: That ETF list looks pretty good, although it's worrisome that 75% of the assets are all at iShares, and I'd definitely use VTI and not VT. So my recommendation is: VTI, TLT, IAU, BIL . Also consider holding some physical gold.
I concur with your concerns about too much with I Shares. SCHO is with Schwab though. Also I actually prefer VGLT to TLT even though TLT is closer to pure Treasury. Mostly just because I trust Vanguard a lot more than Black Rock.
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Tyler
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Re: Setting up an ETF PP

Post by Tyler » Thu Jan 02, 2014 3:21 pm

I personally use VTI/TLT/IAU/SCHO.

I like SCHO because 1) it lets me diversify fund holders away from Blackrock, and 2) its expense ratio is half that of SHY/SHV.
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Re: Setting up an ETF PP

Post by dualstow » Thu Jan 02, 2014 3:29 pm

portart wrote: I sold 800k of PRPFX today
... The expenses are too high in PRPFX for the lack of movement in the fund for the last three years. If I am not going to make money, I might as well consider a gain in savings of costs like a gain by using ETFs.
A savings of some $6K per year (minus the low ER of the pp ETFs). Not bad.
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Re: Setting up an ETF PP

Post by portart » Wed Feb 19, 2014 6:18 pm

Yes, I sold all my PRPFX except some in a taxable account. Its broken up in equal parts IAU, TLT, SHV and VTI. I have my VP in GDX, GDXJ and SLV (about 7% total here). Any venture to guess what I am saving a year now in fees from when I was in PPRFX? Schwab says I am up 3.88 YTD doing this w/out PRPFX.
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Re: Setting up an ETF PP

Post by frugal » Fri Feb 28, 2014 6:21 am

portart wrote: Yes, I sold all my PRPFX except some in a taxable account. Its broken up in equal parts IAU, TLT, SHV and VTI. I have my VP in GDX, GDXJ and SLV (about 7% total here). Any venture to guess what I am saving a year now in fees from when I was in PPRFX? Schwab says I am up 3.88 YTD doing this w/out PRPFX.
For such a big amount, why don't you diversify with EUROPEAN PP too?

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Re: Setting up an ETF PP

Post by portart » Sat Mar 08, 2014 10:37 am

How would you comprise an EU pp?
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