PRPFX vs 4x25% and Drawdowns

[annieB]

This permanent portfilio sure sounds like what I need.
Wondering why so many of you are doing some version of the 4x25%?
Do you like the active management and feel like you can get a higher return?
I think I would tend to over think it and kill the return.Any comment?

I see some comments on the fund being down.What have been the  drawdowns
in the last few years?I tend to get spooked but if I can look at the performance
history,I think I can stay with it.

I'll try to be a good member.

[MediumTex]

You might read some posts and see if any of your questions are answered.

Assuming you have decided that this strategy is right for you, I would suggest just starting out with the basic 4x25% approach.  I don't think that there are any tweaks to this basic approach that provide enough extra return to bother with the extra hassle.

PRPFX is a good fund.  It's a bit more volatile than the basic HB PP.  PRPFX has trailed the HB PP in the last 12 months or so due to PRPFX's light exposure to long term treasuries, which performed very well last year.

Make sure you are completely comfortable with how and why the PP works before making any decisions.  There is a lot behind this simple-looking strategy.

[dualstow]

AnnieB, you'll find this elsewhere, but the short answer for me is that doing the traditional 4x25 HBPP allows me to put 30-YR bonds in my 401(k) and the rest in taxable. Also, I don't feel like paying PRPFX's expense ratio (I have a very small stake in PRPFX) when I have the time to do it myself.

I am in no way trying to juice the returns. Play money is relegated to the vP (Variable Portfolio, ie everything outside of the PP).
If anything, it is those behind the wheel of PRPFX who are trying to get a higher return. They don't have enough long-term treasuries, as
Medium Tex mentioned above.

[clacy]

Annie, keep in mind there is a new PP etf (ticker symbol PERM).  It is new, but much closer to the Harry Browne PP than the PRPFX mutual fund.

Volume is light at the moment, but once it reaches 100k daily shares traded, I would have no hesitation advising my family to invest in it.  I am a DIY'er though.

[Reub]

I found it odd that PERM was down on a very good day for the HBPP. Why would that happen?

[annieB]

Tex:
You look like the hero in one of my fav movies....Platoon.
Yea,I'm older!

Thanks for all of your comments.I've read most of the discussions.
I noticed that PERM does have very light volume but it will be an
excellent option.I'll be looking but assume it's closer to the 4x25%.
Thanks again.

[AdamA]

Wondering why so many of you are doing some version of the 4x25%?

I like the 4 x 25% because it allows me to keeps my assets with different institutions.  I don't like to have all of my money tied up in one fund.

[pershing83]

I wonder how many of us are aware of the Alaska Permanent Fund which has successfully invested their oil money and pays the citizen a yearly dividend? Here is a link, the holdings are intersting, returning apparently about 10% yearly on average.

http://www.apfc.org/home/Content/home/index.cfm