PP article
Posted: Fri Apr 10, 2020 5:09 pm
Gyroscopic Investing
Permanent Portfolio Forum
https://www.gyroscopicinvesting.com/forum/
PP article
https://www.gyroscopicinvesting.com/forum/viewtopic.php?t=10639
Page 1 of 1
Re: PP article
Posted: Sat Apr 11, 2020 1:34 am
Yeah with all the volatility in stocks, the PP is definitely getting more attention. I still get downvoted on Reddit though ;-) Thanks for posting.
Re: PP article
Posted: Sat Apr 11, 2020 3:22 am
Hi!europeanwizard wrote: ↑Sat Apr 11, 2020 1:34 am Yeah with all the volatility in stocks, the PP is definitely getting more attention. I still get downvoted on Reddit though ;-) Thanks for posting.
Which link is it?
Re: PP article
Posted: Sat Apr 11, 2020 7:02 am
Not worth posting, really. It's just that if asked, you give the advice to include a little gold to a beginner's portfolio, you're bound to get down votes on Reddit.
Re: PP article
Posted: Sat Apr 11, 2020 7:42 am
Being downvoted for recommending gold is fine by me.
The herd hates gold. And thinking against the herd usually leads to better results.
The herd hates gold. And thinking against the herd usually leads to better results.
Re: PP article
Posted: Sat Apr 11, 2020 8:17 am
Don't feel bad. Everybody gets downvoted on reddit, for everything.europeanwizard wrote: ↑Sat Apr 11, 2020 1:34 am Yeah with all the volatility in stocks, the PP is definitely getting more attention. I still get downvoted on Reddit though ;-) Thanks for posting.
Re: PP article
Posted: Sat Apr 11, 2020 8:32 am
just because the cash flow was like 1% that does not mean that is what the draw rate is .
draw rates are based on total portfolio value not just what interest or dividends come in ...
even a 100% equities can safely spin off a 4% safe withdrawal rate. i have to question the logic they used there .
someone needs an education on just how safe withdrawal rates are arrived at .
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article
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Income generated
The portfolio generated $145.66 of income during the last six months. This is 0.68%, which is roughly 1.4% annually.
I had previously thought that using a short-term bond fund could increase the income to reduce withdraws in excess of portfolio income. However, recent chaos in the bond market had caused most short-term bond funds to drop anywhere from 4-6% despite their previous good records of maintaining a fairly stable value (see NEAR, JPST, and MINT, for example). They have recovered somewhat but are still down at this time. It does not make sense to risk a drop of 5% for an incremental 0.5% income, so I will stay with SHV for this allocation of the portfolio.
A yield of 1.4% is less than half the amount a portfolio will need to yield during retirement. Working it through at a 1.4% yield, an additional 2.1% is needed at a minimum. At this point, the portfolio is performing well enough to sustain a retirement assuming a 3.5-4% withdrawal rate. We will continue to monitor this portfolio."
draw rates are based on total portfolio value not just what interest or dividends come in ...
even a 100% equities can safely spin off a 4% safe withdrawal rate. i have to question the logic they used there .
someone needs an education on just how safe withdrawal rates are arrived at .
---------------------------------------------------------------------------------------------------------------------------------------------
article
"
Income generated
The portfolio generated $145.66 of income during the last six months. This is 0.68%, which is roughly 1.4% annually.
I had previously thought that using a short-term bond fund could increase the income to reduce withdraws in excess of portfolio income. However, recent chaos in the bond market had caused most short-term bond funds to drop anywhere from 4-6% despite their previous good records of maintaining a fairly stable value (see NEAR, JPST, and MINT, for example). They have recovered somewhat but are still down at this time. It does not make sense to risk a drop of 5% for an incremental 0.5% income, so I will stay with SHV for this allocation of the portfolio.
A yield of 1.4% is less than half the amount a portfolio will need to yield during retirement. Working it through at a 1.4% yield, an additional 2.1% is needed at a minimum. At this point, the portfolio is performing well enough to sustain a retirement assuming a 3.5-4% withdrawal rate. We will continue to monitor this portfolio."