Demp wrote:
I have a non-retirement account set up with the PP. Even in these times when I am experiencing a loss with the PP, and I have extra cash each month to invest, do you recommend still investing each month in the PP? I realize it is the long run and sticking to it that counts but in times like these it makes it difficult.
One nice thing about the PP is the large cash component.
You may consider just adding to your cash position until you reach a band.
"All men's miseries derive from not being able to sit in a quiet room alone."
Demp wrote:
I have a non-retirement account set up with the PP. Even in these times when I am experiencing a loss with the PP, and I have extra cash each month to invest, do you recommend still investing each month in the PP? I realize it is the long run and sticking to it that counts but in times like these it makes it difficult.
One nice thing about the PP is the large cash component.
You may consider just adding to your cash position until you reach a band.
But cash using Short Term Bonds as IBCA (ETF for EU-PP) we can also lose money when we are waiting...
Demp wrote:
I have a non-retirement account set up with the PP. Even in these times when I am experiencing a loss with the PP, and I have extra cash each month to invest, do you recommend still investing each month in the PP? I realize it is the long run and sticking to it that counts but in times like these it makes it difficult.
One nice thing about the PP is the large cash component.
You may consider just adding to your cash position until you reach a band.
But cash using Short Term Bonds as IBCA (ETF for EU-PP) we can also lose money when we are waiting...
Right?
That's a question you should have gotten an answer to before you set up your PP.
What duration of bonds does the fund hold? What type of bonds does it hold?
Q: “Do you have funny shaped balloons?”
A: “Not unless round is funny.”
portart wrote:
PP has outperformed over the last ten years.
Let's check that one out.
Using Craig's excellent PP performance chart, we see that over the last 40 years, the PP has provided an annual average return of 9.7%.
When I tighten up the time frame to the last ten years to check the claim above, I get an average annual return of 9.42%.
In other words, the PP has not outperformed over the last ten years. It has done about the same thing that it has been doing for the last 40 years.
I think he meant that the PP has outperformed stocks in the past 10 years. The S&P 500 index returned 2.6%/year average in the 10 years ending in 2011, and I imagine that average has been bumped up a little with its 13% gain in 2012. As to whether that performance will be repeated in 2013: isn't it great that as a PP investor, you don't care in the slightest???
Definitely go ahead and keep investing - your time will come! If you have new cash to invest, you have 3 choices: 1) add to cash and rebalance when you hit a band, 2) buy equal proportions of each asset, or 3) buy the assets that are in the doghouse. All of these are the right answer. #1 historically gives the worst return. It's tempting to go with #3 and buy gold at the moment, but in the long run option #2 performs the best.
"Democracy is two wolves and a lamb voting on what to have for lunch." -- Benjamin Franklin
I guess you could lose money if interest rates started rising, but you would also be collecting larger dividends, so that would offset the losses a bit.
I really can't speak to whether a specific fund is good for a non-U.S. PP cash allocation.
Q: “Do you have funny shaped balloons?”
A: “Not unless round is funny.”