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how to convert exisiting portfolio to pp?
Posted: Sat Sep 10, 2011 4:12 pm
by metta2006
I'm about to take the plunge into pp. How should I buy into PP? I can't buy equal amounts to have 25% splits because I already have 10% in stocks and 8% in gold and 90% in cash. Should I buy 15% in stocks, 25% bonds and 17% golds at once? Thanks.
Re: how to convert exisiting portfolio to pp?
Posted: Sat Sep 10, 2011 4:20 pm
by buddtholomew
I can't buy equal amounts to have 25% splits because I already have 10% in stocks and 8% in gold and 90% in cash.
Just consider it as a re-balancing event and contribute the appropriate amounts to end up with 25% in each of the 4 asset classes.
Re: how to convert exisiting portfolio to pp?
Posted: Sat Sep 10, 2011 4:25 pm
by l82start
http://www.math.com/everyone/calculator ... ercent.htm this is a handy tool for calculating the amounts you need to buy to make your 4x25%...
or for re-balancing later on.
as long as you are comfortable with the pp and ready to invest in it, i would say jump right in and set up as close to 25% as you can from the get go, if you have tax advantaged space, searching the forum and Craig's crawling road blog for some "how to" info on the best assets to put in there is a good next step.
Re: how to convert exisiting portfolio to pp?
Posted: Sat Sep 10, 2011 5:28 pm
by AdamA
metta2006 wrote:
Should I buy 15% in stocks, 25% bonds and 17% golds at once? Thanks.
Yep.
Re: how to convert exisiting portfolio to pp?
Posted: Sat Sep 10, 2011 11:41 pm
by metta2006
I won't be able to buy 17% of physical gold all at once. I can buy one oz every day over the course of 20 days. But then I won't be buying the other two assets at the same time as gold.Or would you say this strategy is still acceptable or should I buy GLD instead of physical gold? The the ratio between physical and ETF gold would be 1:3. Thanks.
Re: how to convert exisiting portfolio to pp?
Posted: Sun Sep 11, 2011 9:16 am
by AdamA
metta2006 wrote:
I won't be able to buy 17% of physical gold all at once. I can buy one oz every day over the course of 20 days. But then I won't be buying the other two assets at the same time as gold.Or would you say this strategy is still acceptable or should I buy GLD instead of physical gold? The the ratio between physical and ETF gold would be 1:3. Thanks.
That's a personal decision. Just make sure you understand the risks associated with both choices.