How much money do you make from PP in 2011?

[Odysseusa]

For my Permanent Portfolio, so far I make $5,938.32 in the year 2011.


How about you?

[buddtholomew]

This question is non-sensical. Why are you interested in $ returns when it is easy to calculate % gains using SPY, TLT, SHV and GLD? What will you gain from the information if I told you that I made .10 cents or 100000 dollars. They are both equivalent if my starting values were $1 and 1000000 dollars respectively. 

[edsanville]

This question is non-sensical. Why are you interested in $ returns when it is easy to calculate % gains using SPY, TLT, SHV and GLD? What will you gain from the information if I told you that I made .10 cents or 100000 dollars. They are both equivalent if my starting values were $1 and 1000000 dollars respectively. 

It's not non-sensical... it's just almost equivalent to asking how much money someone has invested in the PP.  That's a pretty juicy question really, I was hoping a few people would have answered... any millionaires posting here?

[Odysseusa]

As long as we make money from PP, it doesn't matter how much assets we have. 

[edsanville]

Back in 2003, I used to read a blog by some guy who was trying to build $1 million in savings by the age of 40 for retirement (2016).  Turns out, he already blasted by the $1 million mark in late 2010.  He grew his fortune mostly by cutting back on spending and working hard.  I bet he could have done it even more quickly if he had used the PP as well.

site: http://www.pfblog.com/

Once you've got $1 million in the PP, you're making around 5-6% in real gains every year.  I could totally live just fine on $50-60k/year.  Personally, I'm not that materialistic, and I basically just want to live my life in freedom.  I gather that many others on this forum think the same way.

[AdamA]

Once you've got $1 million in the PP, you're making around 5-6% in real gains every year.  I could totally live just fine on $50-60k/year.  Personally, I'm not that materialistic, and I basically just want to live my life in freedom.  I gather that many others on this forum think the same way.

I certainly agree.  The trick to this is getting your spouse/family on board.

[clacy]

A better question might be "What is critical mass for you?".  Critical mass is a term that Bob Brinker uses, basically meaning that you've accumulated enough to satisfy your retirement.  

So for me:

I'm 37 y/o
Married
2 kids under the age of 3
I own a home with a mortgage
No other debt

I am shooting for somewhere north of $3mm (real), preferably $4+ but a lot of that will depend on future income/savings.

I personally want to accumulate more than I really need to fund retirement, so that I have a sizable amount to give to my two boys.  The reason I feel this responsibility, is that I feel their generation will likely have economic problems related to paying off the US debt that has accumulated over the past 30 years. All of the borrowing and interest will one day rob future GDP and personal wealth, IMO.

Anyway, since I'm 37 currently, my time frame for reaching my "critical mass" would be somewhere between 20-30 years in all likelihood.  The main variable as stated before will be my income/savings rate in the future.  Currently I make an income just over the 6-figure mark, but I don't save nearly as much as I'd like because my wife is taking care of the kids and our lifestyle, although certainly reasonable and not extravagant, takes around 80%+ of my after-tax income.  

Most likely she will enter back into the workforce at some point and had earning potential near 6-figures previously.  That will probably be lower when she re-enters after several years out of the workforce. Obviously such a move could change our savings rate dramatically. 

Also, I am involved in a family business that could provide me with a significantly higher income at some point, or it could provide me with bankruptcy depending on a lot of factors that are not entirely predictable.

I don't hate working by any means but would prefer to not have to deal with the stress/pressure of working because I have to for the next 30 years, although I am willing to do so in order to accomplish my goals.

Of course none of that is set in stone as people's attitudes and motivations change over time.  20 years from now, if I'm far more confident in the ability of my sons to earn a good living, I will probably not be as motivated to accumulate for their purposes, as much as my own security.

[jackely]

For my Permanent Portfolio, so far I make $5,938.32 in the year 2011.


How about you?

For the portion I have in PRPFX Google finance tells me I have so far lost $3551.21. Fortunately I took MT's advice and converted it to 10% EDV so I've only lost $2801.71 in all.

Fortunately, the HBPP part has done much better. And it's also much bigger.

[buddtholomew]

This question is non-sensical. Why are you interested in $ returns when it is easy to calculate % gains using SPY, TLT, SHV and GLD? What will you gain from the information if I told you that I made .10 cents or 100000 dollars. They are both equivalent if my starting values were $1 and 1000000 dollars respectively. 

It's not non-sensical... it's just almost equivalent to asking how much money someone has invested in the PP.  That's a pretty juicy question really, I was hoping a few people would have answered... any millionaires posting here?

Again, I am not sure how you intend to use this information. Are you curious, or looking for validation that this approach to investing has been adopted by high net worth individuals? Help me understand.

[edsanville]

This question is non-sensical. Why are you interested in $ returns when it is easy to calculate % gains using SPY, TLT, SHV and GLD? What will you gain from the information if I told you that I made .10 cents or 100000 dollars. They are both equivalent if my starting values were $1 and 1000000 dollars respectively. 

It's not non-sensical... it's just almost equivalent to asking how much money someone has invested in the PP.  That's a pretty juicy question really, I was hoping a few people would have answered... any millionaires posting here?

Again, I am not sure how you intend to use this information. Are you curious, or looking for validation that this approach to investing has been adopted by high net worth individuals? Help me understand.

Juicy questions aren't necessarily "useful."  Why, are you a high net worth individual?

[edsanville]

I agree, the "critical mass" will be different for different people.  As for myself, I'm 31 years old, single with no children and I've always rented apartments.  I don't tend to stay long enough in one place to buy a house, and I don't own a vehicle either.  I try to live within walking distance of what I need.  My income right now comes from my sole proprietorship, which netted me just over $100k last year.  Since I spend about $19k/year, I'm currently saving around 75% of my after-tax income.  My federal income taxes last year were about twice my actual expenditures, in fact!

I place my critical mass at $1 million or more, so I can spend some money to travel more and see the rest of the world between now and when I'm dead.

A better question might be "What is critical mass for you?".  Critical mass is a term that Bob Brinker uses, basically meaning that you've accumulated enough to satisfy your retirement.  

So for me:

I'm 37 y/o
Married
2 kids under the age of 3
I own a home with a mortgage
No other debt

I am shooting for somewhere north of $3mm (real), preferably $4+ but a lot of that will depend on future income/savings.

I personally want to accumulate more than I really need to fund retirement, so that I have a sizable amount to give to my two boys.  The reason I feel this responsibility, is that I feel their generation will likely have economic problems related to paying off the US debt that has accumulated over the past 30 years. All of the borrowing and interest will one day rob future GDP and personal wealth, IMO.

Anyway, since I'm 37 currently, my time frame for reaching my "critical mass" would be somewhere between 20-30 years in all likelihood.  The main variable as stated before will be my income/savings rate in the future.  Currently I make an income just over the 6-figure mark, but I don't save nearly as much as I'd like because my wife is taking care of the kids and our lifestyle, although certainly reasonable and not extravagant, takes around 80%+ of my after-tax income.  

Most likely she will enter back into the workforce at some point and had earning potential near 6-figures previously.  That will probably be lower when she re-enters after several years out of the workforce. Obviously such a move could change our savings rate dramatically. 

Also, I am involved in a family business that could provide me with a significantly higher income at some point, or it could provide me with bankruptcy depending on a lot of factors that are not entirely predictable.

I don't hate working by any means but would prefer to not have to deal with the stress/pressure of working because I have to for the next 30 years, although I am willing to do so in order to accomplish my goals.

Of course none of that is set in stone as people's attitudes and motivations change over time.  20 years from now, if I'm far more confident in the ability of my sons to earn a good living, I will probably not be as motivated to accumulate for their purposes, as much as my own security.