I'm feeling some paralysis about new money

General Discussion on the Permanent Portfolio Strategy

Moderator: Global Moderator

User avatar
dualstow
Executive Member
Executive Member
Posts: 8774
Joined: Wed Oct 27, 2010 10:18 am
Location: next to emotional support peacock
Contact:

I'm feeling some paralysis about new money

Post by dualstow » Wed Aug 14, 2019 1:47 pm

It's easy to tell people to just keep plugging savings into all four assets, but I don't know if I can buy more EDV.
More gold....eh, maybe I should at least wait for a drop below 1500.
Stocks? Just rebalanced out.

I will likely do the cowardly thing and just keep too much in cash, and then regret it later.

There's no windfall, I'm just talking about periodic investable new money.
https://www.reddit.com/r/TactiCat
User avatar
Xan
Administrator
Administrator
Posts: 2348
Joined: Tue Mar 13, 2012 1:51 pm

Re: I'm feeling some paralysis about new money

Post by Xan » Wed Aug 14, 2019 2:21 pm

You're overthinking... Yes, maybe the money you put in this month isn't a good time to buy bonds. Maybe next month's will be. It'll even out.
User avatar
ochotona
Executive Member
Executive Member
Posts: 2873
Joined: Fri Jan 30, 2015 5:54 am

Re: I'm feeling some paralysis about new money

Post by ochotona » Wed Aug 14, 2019 2:22 pm

dualstow wrote:
Wed Aug 14, 2019 1:47 pm
It's easy to tell people to just keep plugging savings into all four assets, but I don't know if I can buy more EDV.
More gold....eh, maybe I should at least wait for a drop below 1500.
Stocks? Just rebalanced out.

I will likely do the cowardly thing and just keep too much in cash, and then regret it later.

There's no windfall, I'm just talking about periodic investable new money.
Make a plan to invest it slowly over the next several months... maybe over the next year.
User avatar
dualstow
Executive Member
Executive Member
Posts: 8774
Joined: Wed Oct 27, 2010 10:18 am
Location: next to emotional support peacock
Contact:

Re: I'm feeling some paralysis about new money

Post by dualstow » Wed Aug 14, 2019 2:25 pm

Yup, agree with both of you. Best not to think too much about it and let it do its thing over time. Thanks.
https://www.reddit.com/r/TactiCat
User avatar
Kbg
Executive Member
Executive Member
Posts: 1397
Joined: Fri May 23, 2014 4:18 pm

Re: I'm feeling some paralysis about new money

Post by Kbg » Wed Aug 14, 2019 2:46 pm

Look at my avatar, and then say out loud three times: “It’s the portfolio that matters, not the assets. My assets simply provide the expected performance and risk profile OF THE PORTFOLIO.”

Yell the last three loudly as it relieves stress.
User avatar
Tyler
Executive Member
Executive Member
Posts: 1780
Joined: Sat Nov 12, 2011 3:23 pm
Contact:

Re: I'm feeling some paralysis about new money

Post by Tyler » Wed Aug 14, 2019 2:54 pm

I used to worry about the timing of asset purchases as well, but over time I've come to understand just how little short-term purchase inefficiencies matter in the grand scheme of a long-term portfolio plan.

Pick your ingredients based on the recipe and stop tasting the baking soda.
PortfolioCharts.com : Find a portfolio to love
pmward
Executive Member
Executive Member
Posts: 458
Joined: Thu Jan 24, 2019 4:39 pm

Re: I'm feeling some paralysis about new money

Post by pmward » Wed Aug 14, 2019 3:12 pm

Yeah, for new funds, they are such a small percentage of the overall that I don't really worry about it too much. It does feel silly putting money into just about any individual asset right now, haha. I agree with kgb that it's the portfolio as a whole that really matters, and that's what I keep in mind every two weeks when fresh funds are going in (mostly into stocks right now as that's the lagging asset, which I feel almost positive are about to drop, but oh well).
User avatar
Kriegsspiel
Executive Member
Executive Member
Posts: 1836
Joined: Sun Sep 16, 2012 5:28 pm

Re: I'm feeling some paralysis about new money

Post by Kriegsspiel » Wed Aug 14, 2019 4:47 pm

Nothing cowardly about stacking cash.
To die, to sleep
To sleep, perchance to dream; ay, there's the rub
For in that sleep of death what dreams may come
User avatar
Tortoise
Executive Member
Executive Member
Posts: 1181
Joined: Sat Nov 06, 2010 2:35 am

Re: I'm feeling some paralysis about new money

Post by Tortoise » Wed Aug 14, 2019 6:07 pm

I understand your hesitation, ds.

A few months ago I realized that I was very overweight in cash in my taxable accounts, so I closed my eyes, clenched my fists, and bought a bunch of stocks, bonds, and gold on the same day to bring everything to a 4x25 PP. Pulling the trigger was tough, but I’m glad I did it.

Also, a few weeks ago I received a sign-on bonus for a new job and had to decide whether to leave it in cash or use it to rebalance my 4x25 PP. Again, I agonized over it for about a day but ended up putting it in the PP. And again, I’m glad I did it.

Come on in, the water’s fine! 8)
User avatar
dualstow
Executive Member
Executive Member
Posts: 8774
Joined: Wed Oct 27, 2010 10:18 am
Location: next to emotional support peacock
Contact:

Re: I'm feeling some paralysis about new money

Post by dualstow » Wed Aug 14, 2019 10:27 pm

Great posts all around, guys. Thanks again.
https://www.reddit.com/r/TactiCat
User avatar
Smith1776
Executive Member
Executive Member
Posts: 263
Joined: Fri Apr 21, 2017 6:01 pm

Re: I'm feeling some paralysis about new money

Post by Smith1776 » Thu Aug 15, 2019 12:33 am

I think it's perfectly natural to feel some trepidation towards at least one of the PP asset classes at any given time.

When all else fails, I think the safest option to calm any fears is to overweight the cash portion of course.

Browne did say (I think in Fail-Safe Investing?) that an acceptable alternative to the PP was just t-bills.

Better than putting it all on red. :D
Early to bed and early to rise makes a man healthy, wealthy, and wise.
User avatar
sophie
Executive Member
Executive Member
Posts: 3212
Joined: Mon Apr 23, 2012 7:15 pm

Re: I'm feeling some paralysis about new money

Post by sophie » Thu Aug 15, 2019 7:08 am

I've got the same trepidation, because I was actually a bit underweight in bonds, and if I hit a rebalance band soon I will probably have to buy some.

So here's a thought: I'll buy the bonds in taxable. That way, if bonds go down which is what we all expect, I'll have a nice tax loss harvest to look forward to a year from now.
Post Reply