Gyroscopic Investing

Greetings all and apologies in advance for my poor communication skills (one explanation for why I am a low income earner)


I have 90% of my savings tied up in Australia's version of 401(k) known as superannuation (Super). I have options of allocating these funds to Cash and a Share Index (managed by State Street Global Advisors -SSgA) (Base fee 0.15%) which to my mind meet the requirements for the Permanent Portfolio.

PDF of the fund here http://www.sunsuper.com.au/WorkArea/lin ... ItemID=246 Relevant pages to SSgA 37,38


The problem I'm foreseeing is that with Cash & Shares locked in Super and Bonds and Gold outside of those funds how would I rebalance? Also 90% would be in Cash & Shares whilst I'd only have 10% in Bonds and Gold. There is no option of balancing those out. How would this effect the PP?

So I guess what I'm looking for is can I run the PP with "cash" and "shares" locked away in my Super then run Gold and Bonds on the outside (taxed)?


Australian Bonds - AAA rated, fully backed by the Government BUT only 15 years available. Do I hold for 5 years? That's roughly the same percentage of time that the PP requires for US Treasury Bonds (30 year bonds sell @ 20 years)


Help is greatly appreciated

I think this is a case where you have to do the best you can with what you have. 

You might want to consider putting the full 10% of the gold/bond account in bonds and then gradually buying some gold coins over the next few years.

I would also consider decreasing what you're contributing to the stock/cash portion and trying to buy more bonds/gold.

Even if you got to 30 30 20 20 you'd be close enough to keep the PP honest.  So you'd essentially need to add another 10% in bonds and another 20% in gold coins.

Don't stress too much about the numbers.  Do the best you can, and remember the very corny quote "the enemy of good is perfect."