In a taxable account I have been running a portfolio of PRPFX for awhile. It has been suggested by MT that I add either TLT or EDV to dampen the volatility and strenghthen the portfolio in times of great stress. That has got me thinking...is it worth it to stay with this setup (either PRPFX alone or adding about a 10% position in either TLT or EDV) or should I abandon this altogether and go with the 4 x 25 in a brokerage account using VT (I would use the world index), GLD, TLT and SHY. Taxes are a great concern for me from the divis in TLT and SHY. Also, the higher tax rate when I have to sell some gold. But instead of paying Mr. Cuggino .82% expenses I can do just about the same for .1925% plus very small brokerage costs ($3 per trade). I would like to get some comments from folks trying to do this in taxable accounts only (no room in tax deferred and Roths). What are you doing and why? Thanks.
I'm doing both. Most is 4 x 25. About 1/4 of that amount is in PRPFX but I plan on only contributing to PRPFX right now due to the perceived tax benefits.