Stocks and Bonds Decline

[buddtholomew]

For the noobs or those with short term memory problems, I personally hold a 4x25 PP in taxable and combined with 401K's inspired by BH a 50/40/10 equities/fixed income/gold portfolio. I choose not to mess with the HB formula and only purchase gold in a VP to maintain the 10% allocation.

Either you are a PP purist or you are an investor that holds <25% in gold to diversify equity and fixed income investments. I am both 

Actually, the distinction between the PP and VP is artificial in this case.  You really own 75% equities, 65% bonds, 35% gold and 25% cash divided by the ratio of the size of the VP to the PP.  When HB spoke about a VP, he's really talking about shits n' giggles for the dumb money to have a harmless outlet, not a sensible but half-baked PP that Boglehead represents.

Your numbers are false. You don't know the percentages between HB and PP. It's 50/40/10 now shut up mr know it all.

[MachineGhost]

Your numbers are false. You don't know the percentages between HB and PP. It's 50/40/10 now shut up mr know it all.

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[Dieter]

....It's 50/40/10 .....

My retirement funds are similar in my two main accounts (IRA/401k) -- 50/37.5/12.5 overall allocation. Bonds are range of LTT, Total Bond (401k), STB, a little TIPS (401k).  With international / tilts on the stock side.

[dualstow]

I have something similar to yours, Budd. A pp core that I don't tinker with, but a larger vp -- no gold in mine -- that means 8-10% gold in (vp +pp).  The pp is becoming a larger % of the total, and maybe one day there will be no vp.

[iwealth]

At least I tried to explain...remarkable how people choose not to read and just take the conversation wherever they choose. BH does not includ gold, but when the portfolio is looked at in totality there is a 10% allocation to precious metals. Funds in taxable and tax-deferred have different investment horizons. Get it????

It was just a slight misread. Thought you meant that you held a "Boglehead" portfolio consisting of 50/40/10 in your 401ks. Sowee, I dun't reed gud.

If I recall from prior posts, you have a pretty significantly sized taxable account. Since you mentioned investment horizons, you planning on early retirement or something and drawing down that money?

[MachineGhost]

I have something similar to yours, Budd. A pp core that I don't tinker with, but a larger vp -- no gold in mine -- that means 8-10% gold in (vp +pp).  The pp is becoming a larger % of the total, and maybe one day there will be no vp.

Wow, you too?!!

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[buddtholomew]

At least I tried to explain...remarkable how people choose not to read and just take the conversation wherever they choose. BH does not includ gold, but when the portfolio is looked at in totality there is a 10% allocation to precious metals. Funds in taxable and tax-deferred have different investment horizons. Get it????

It was just a slight misread. Thought you meant that you held a "Boglehead" portfolio consisting of 50/40/10 in your 401ks. Sowee, I dun't reed gud.

If I recall from prior posts, you have a pretty significantly sized taxable account. Since you mentioned investment horizons, you planning on early retirement or something and drawing down that money?

No worries, too much testosterone this morning...

Yes, I would like the option to retire before reaching 59-1/2 and gaining access to tax-deferred investments (I am familiar with 72t). I also maintain a larger emergency fund than most and the PP (combined with CD's/cash) dampens volatility to an acceptable amount for me.

70/30 in 401K's as I still have 2+ decades before formal retirement age (60-65).

[ochotona]

Actually, the distinction between the PP and VP is artificial in this case.

Yes, you only have ONE portfolio... everything you own, and everything you owe, plus insurances, plus the amount you earn (and likelihood of being unemployed), and your future health liabilities, liabilities to family, the government (estate taxes), and on and on.

Drawing dotted lines around things is very useful for analysis. But it's just a tool, in the end.

[buddtholomew]

Actually, the distinction between the PP and VP is artificial in this case.

Yes, you only have ONE portfolio... everything you own, and everything you owe, plus insurances, plus the amount you earn (and likelihood of being unemployed), and your future health liabilities, liabilities to family, the government (estate taxes), and on and on.

Drawing dotted lines around things is very useful for analysis. But it's just a tool, in the end.

A dollar in taxable is more valuable to me today. Tax rates at withdrawal and long-term capital gains/collectibles taxes owed dictate how valuable tax-deferred space will be in the future.

[ochotona]

A dollar in taxable is more valuable to me today. Tax rates at withdrawal and long-term capital gains/collectibles taxes owed dictate how valuable tax-deferred space will be in the future.

Those govt drawn lines aren't dotted, those are solid!

[dualstow]

I have something similar to yours, Budd. A pp core that I don't tinker with, but a larger vp -- no gold in mine -- that means 8-10% gold in (vp +pp).  The pp is becoming a larger % of the total, and maybe one day there will be no vp.

Wow, you too?!!

[align=center]{ img: you are doomed }[/align]

LOL. I suppose where Budd and I differ is that I didn't arrange all this so that my overall gold percentage would be a certain amount. I simply was fully invested before I discovered the pp and I am transitioning slowly.

[buddtholomew]

A dollar in taxable is more valuable to me today. Tax rates at withdrawal and long-term capital gains/collectibles taxes owed dictate how valuable tax-deferred space will be in the future.

Those govt drawn lines aren't dotted, those are solid!

If they are solid lines, then how can I manage assets as a single portfolio?

[buddtholomew]

I have something similar to yours, Budd. A pp core that I don't tinker with, but a larger vp -- no gold in mine -- that means 8-10% gold in (vp +pp).  The pp is becoming a larger % of the total, and maybe one day there will be no vp.

Wow, you too?!!

[align=center]{ img: you are doomed }[/align]

LOL. I suppose where Budd and I differ is that I didn't arrange all this so that my overall gold percentage would be a certain amount. I simply was fully invested before I discovered the pp and I am transitioning slowly.

We are more alike than different in this regard. If tax-deferred grows more than taxable, I may have difficulty maintaining a 10% allocation to gold with the options currently available. 401K brokerage windows do not allow investments in precious metals so only a rollover will enable me to invest in gold tax-deferred. If this materializes, I may decide to transition both BH and PP to align more closely with a 4x25 - as I reach retirement age.

[dualstow]

I see. I've got a solo 401(k) in which I can put in whatever I want, so there are some gold ETF shares in there. I do prefer coins in a safe deposit box. I should hurry up and buy more so I can repress all memory of the 4-5% markup for the rest of my life. ; - )

[buddtholomew]

I see. I've got a solo 401(k) in which I can put in whatever I want, so there are some gold ETF shares in there. I do prefer coins in a safe deposit box. I should hurry up and buy more so I can repress all memory of the 4-5% markup for the rest of my life. ; - )

Agree. I only own paper gold, but that needs to change. Planning on a TLH to exchange into physical...soon!!

[barrett]

I should hurry up and buy more so I can repress all memory of the 4-5% markup for the rest of my life. ; - )

Ah, my approach exactly! In my mind, the coins I bought over a year ago had NO markup.

[ochotona]

I get my gold with 1% markup. 4-5%? Goodness. Anyone can send me a PM for the dealer name.

[ochotona]

Everyone has problems managed across taxable and tax deferred. The guvmint does not help us, nor do corp benefit plans.

[dualstow]

I get my gold with 1% markup.

1% is pretty appealing.

[Kriegsspiel]

I see. I've got a solo 401(k) in which I can put in whatever I want, so there are some gold ETF shares in there. I do prefer coins in a safe deposit box. I should hurry up and buy more so I can repress all memory of the 4-5% markup for the rest of my life. ; - )

Agree. I only own paper gold, but that needs to change. Planning on a TLH to exchange into physical...soon!!

Same here. I had some capital gains for 2014, and I want my IAU losses to come out of my regular income. From what I can tell, I can offset a $3,000 loss with a 15% long term capital gain, or my 25% tax bracket

[ochotona]

I get my gold with 1% markup. 4-5%? Goodness. Anyone can send me a PM for the dealer name.

Doug Eberhardt, San Diego. Free insured shipping. Really good prices, straight-up fellow, very helpful.

Buygoldandsilversafely.com

[barrett]

I get my gold with 1% markup. 4-5%? Goodness. Anyone can send me a PM for the dealer name.

Doug Eberhardt, San Diego. Free insured shipping. Really good prices, straight-up fellow, very helpful.

Buygoldandsilversafely.com

Thanks for posting that, ochotona. I am really having trouble figuring out how someone can sell gold with only a 1% markup. It would seem that a gold dealer just takes on too much risk with a very slim markup like that. For example, I just checked gold prices and I see that overnight they are off by 1%. Someone buying coins even yesterday is already losing money selling them at a markup of 1%. We all know the old adage of "when something seems too good to be true...". What am I missing here?

[barrett]

Actually, the distinction between the PP and VP is artificial in this case.

Yes, you only have ONE portfolio... everything you own, and everything you owe, plus insurances, plus the amount you earn (and likelihood of being unemployed), and your future health liabilities, liabilities to family, the government (estate taxes), and on and on.

Drawing dotted lines around things is very useful for analysis. But it's just a tool, in the end.

It's good to be reminded of this from time to time. Even though I am trying to arrange my assets so that I am running a PP, my true asset/liability allocation is still far from 4X25. Let's not forget immediate family members who can be either assets or liabilities... and that's both in the short term and the long term. Hmm. Good to strive for a PP while at the same time realizing that what I really have when those dotted lines are taken away is something quite different altogether.

[sophie]

I get my gold with 1% markup. 4-5%? Goodness. Anyone can send me a PM for the dealer name.

Doug Eberhardt, San Diego. Free insured shipping. Really good prices, straight-up fellow, very helpful.

Buygoldandsilversafely.com

Thanks for posting that, ochotona. I am really having trouble figuring out how someone can sell gold with only a 1% markup. It would seem that a gold dealer just takes on too much risk with a very slim markup like that. For example, I just checked gold prices and I see that overnight they are off by 1%. Someone buying coins even yesterday is already losing money selling them at a markup of 1%. We all know the old adage of "when something seems too good to be true...". What am I missing here?

I had the same question.  Free shipping and 1% markup??  How does this guy stay in business??  They do have an A+ rating from the BBB and I did not see any complaints.  Has anyone ordered from this company?

[dualstow]

I had the same question.  Free shipping and 1% markup??  How does this guy stay in business??  They do have an A+ rating from the BBB and I did not see any complaints.  Has anyone ordered from this company?

Nothing against buygoldandsilversafely or Doug E Fresh, but I don't trust the BBB the way I used to. They are pay-to-play now, last I read.