Gyroscopic Investing

A bunch more ETFs are now commission-free at Schwab:
http://www.schwab.com/public/schwab/inv ... mbol%3DQQQ

Notably, the list includes ETFS Physical Swiss Gold Shares (SGOL). So it is now possible to implement a 4x25 PP at Schwab with zero commissions:
SCHB, SCHO, SGOL, and individual bonds.

This is amazing news!!!

Amusingly enough, the PP in my 401k is exactly the mix you used an example: SCHB, SCHO, SGOL, and individual bonds.

That seems like a solid implementation. The overall expense ratio is only 0.1275%.

Thanks for the update. That's good news.

I will likely open an account at Schwab.  I like broker diversification and I love free ETF trading.

clacy wrote: I will likely open an account at Schwab.  I like broker diversification and I love free ETF trading.

I highly recommend Schwab. My personal experience with them has been outstanding. My only complaint is that you have to call them on the phone to sell bonds.

While this is interesting news, with only 3 ETFs to invest in and with re-balancing taking place about once a year even with a 30/20 band,  it seems we ought to be more concerned about :

      Total expenses and the spread each time we trade.

It seems the commission cost is a very low percentage compared to the above unless you are trading frantically or perhaps trading on a monthly schedule.

Am I missing something?

gap wrote: While this is interesting news, with only 3 ETFs to invest in and with re-balancing taking place about once a year even with a 30/20 band,  it seems we ought to be more concerned about :

      Total expenses and the spread each time we trade.

It seems the commission cost is a very low percentage compared to the above unless you are trading frantically or perhaps trading on a monthly schedule.

Am I missing something?

Anyone adding to their portfolio regularly--in line with bi-weekly paychecks or with lots of small additions--is a big beneficiary of commission-free ETFs.

Hello,

do you know how much costs to hedge the EUR, in that USD HBPP for an european citizen?

Thank you.

frugal wrote: Hello,

do you know how much costs to hedge the EUR, in that USD HBPP for an european citizen?

Thank you.

Frugal, are there are long Euro ETFs that trade where you are? If so you could take a look at

25% Long Euro ETF
25% Gold
25% US Equities
25% 30 year US Treasuries

or even better would be...

25% Short Dollar ETF
25% Gold
25% US Equities
25% 30 year US Treasuries

I haven't looked into these returns at all so please don't just run off and do this. It is worth a look though.

melveyr wrote:

frugal wrote: Hello,

do you know how much costs to hedge the EUR, in that USD HBPP for an european citizen?

Thank you.

Frugal, are there are long Euro ETFs that trade where you are? If so you could take a look at

25% Long Euro ETF
25% Gold
25% US Equities
25% 30 year US Treasuries

or even better would be...

25% Short Dollar ETF
25% Gold
25% US Equities
25% 30 year US Treasuries

I haven't looked into these returns at all so please don't just run off and do this. It is worth a look though.

melveyr melveyr melveyr

well, and how in that manner I will be protected ?

With only 25% in EUROS...

Thank you melveyr!