Gyroscopic Investing

sophie wrote: I was also worried having cash and gold dominating my taxable savings. But that's OK, because they're complementary assets in a sense.  If gold tanks, then cash will be doing well.

Unlikely cash would yield anything close enough to offset in a deep bear market in gold.

AgAuMoney wrote: You'll notice I discouraged keeping just one asset in an account.

I don't think that having 2 assets protects you, does it? Would having LTTs and stocks in tax-deferred space protect you from a prolonged bear market in LTTs?

AgAuMoney wrote: It isn't like there is some magic formula that when you do it just perfect it works and if you mess up in the slightest you haven't a prayer.

I guess my biggest hangup is the potential for a large loss of either my taxable or tax deferred space. The tax deferred space is too valuable for asset accumulation, and I'd like to have both to draw from at retirement, depending on taxes at the time.

I am most concerned about the tax deferred acts, since these would be disproportionately loaded with LTTs in an asymmetric PP. And since LTTs have been in a 30 year bull market, I would vote them most likely to go the opposite direction by the time I retire.

I raise these issues not because I know I am right. Rather, I value hearing the other side of the argument.

BearBones wrote:

AgAuMoney wrote: You'll notice I discouraged keeping just one asset in an account.

I don't think that having 2 assets protects you, does it? Would having LTTs and stocks in tax-deferred space protect you from a prolonged bear market in LTTs?

I think stocks would be a good pairing.

But it sounds like you are concerned.  So add a 3rd asset in that account.  Or a 4th.  The important thing to remember is that in any account you do not need ALL your LTTs or ALL your stocks or all of anything.  You can mix and match assets between accounts in whatever manner works for you.

edit:  And the mix can and probably will change over time.  That's OK too.