Hello, your friendly neighbour to the north here!
I have recently moved to the US for work and am converting my Canadian dollars into USD and then looking to get into the HBPP. I've done some homework so I do not feel the need to tinker here - the standard 4 x 25 looks good to me. The things us Canadians hear coming out of the US are downright scary to us up north (housing implosion, banks failing, bailouts, weak US dollar, debt ceiling, joblessness, etc). Given the current climate, what is the best way to "ease" into the portfolio (or is any easing required)? Is now the worst time to get involved? Should I just stick with my loonies?
I have $420K to commit and a timeframe of about 4-5 years at which point I may return to Canada. Advice is appreciated, thanks!
Good time to ease into HBPP or jump right in?
Moderator: Global Moderator
Re: Good time to ease into HBPP or jump right in?
The whole idea of the PP is a stable real adjusted return.
Historically, the PP has delivered on this goal.
The result of a stable strategy is that there is never a "great" or "bad" time to get in. By minimizing the peaks and the valleys, it doesn't really matter when you buy.
I see the PP as my super-charged riskier bank account. If i have money, I put it in. If I need money, I take it out. That is as much thought as I put into deciding when to "get in."
Even if it weren't stable, which I think it is, I still would have no idea if it were a "good" time to buy in. That would involve predicting the future of the financial markets, which is proven to be a total waste time at best, and financially devastating at worst.
If you like the strategy, I would just go all in.
Easing in might offer a psychological benefit, but if you are already comfortable with the premise what are you waiting for?
Historically, the PP has delivered on this goal.
The result of a stable strategy is that there is never a "great" or "bad" time to get in. By minimizing the peaks and the valleys, it doesn't really matter when you buy.
I see the PP as my super-charged riskier bank account. If i have money, I put it in. If I need money, I take it out. That is as much thought as I put into deciding when to "get in."
Even if it weren't stable, which I think it is, I still would have no idea if it were a "good" time to buy in. That would involve predicting the future of the financial markets, which is proven to be a total waste time at best, and financially devastating at worst.
If you like the strategy, I would just go all in.
Easing in might offer a psychological benefit, but if you are already comfortable with the premise what are you waiting for?
everything comes from somewhere and everything goes somewhere