Gyroscopic Investing

Thinking about cash options now that Vanguard reopened its Treasury MM fund. I see from prior posts that a lot of folks are keeping their cash in bank accounts and CCs while others of us are earning closer to zero for staying a tad bit safer. Got me thinking that there are several tiers of safety when constructing a PP.

For the cash side:
1. Treasury notes and bills bought directly via TD or thru brokerage, pure treasury MM fund (VUSXX), or short term fund (VFISX), iBonds, etc
2. FDIC insured account or CD
3. Non-FDIC MM account

For bonds, similar:
1. Directly held
2. TLT
3. Non-treasury

For gold:
1. Directly held
2. Indirectly held but has withdrawal of physical option
3. ETF

Would be nice to construct an updated list of options for each category. Anyone care to elaborate or help?

I am very comfortable using ETFs and mutual funds.

You could almost write a book covering each of these assets in detail.  You could fill chapters discussing the various options currently available and the relative tradeoffs between security and simplicity.

What a great update to Harry Browne's Permanent Portfolio that would be!

Mark Leavy wrote: You could almost write a book covering each of these assets in detail.  You could fill chapters discussing the various options currently available and the relative tradeoffs between security and simplicity.

What a great update to Harry Browne's Permanent Portfolio that would be!

https://www.youtube.com/watch?v=zbqur1e4mtY&t=0m52s

That is my response to your funny there Mark.

BearBones wrote: For bonds, similar:
1. Directly held
2. TLT
3. Non-treasury

Non-treasury bonds are really not appropriate when building the PP for a variety of reasons.
https://web.archive.org/web/20160324133 ... ation-faq/

Everything else on your list seems fine.

IDrinkBloodLOL wrote: The way I look at it is simple: if you are most afraid of Chinese hackers and the like making your funds disappear, go physical. If you are more afraid of a burglar busting down your door, putting a shotgun to your head and demanding your gold and cash, go paper.

And if you wish to diversify your risk, do both/all!  Cash at home, cash in safe deposit box, cash in bank account, individual treasuries, and treasury funds.

I have heard Sophie say cash is actually the trickiest asset. 

Gone are the days when we were singing the praise of I-Bonds (one kind of US Savings Bonds) in so-called deep cash, but they'll come back into favor one day.

I still like 2- and 3-year notes, and I think I got that idea from Moda.
ETFs are fine. I just like to hold the cash directly and I have time to make the trades.

IDrinkBloodLOL wrote: The way I look at it is simple: if you are most afraid of Chinese hackers and the like making your funds disappear, go physical. If you are more afraid of a burglar busting down your door, putting a shotgun to your head and demanding your gold and cash, go paper.

Isn't that the same thing as physical?

IDrinkBloodLOL wrote:

dualstow wrote:Isn't that the same thing as physical?

Would that make sense with what I appeared to be saying?

That's why I mention it. It doesn't appear to make sense.
I assume you mean something like --> if hackers, then paper.
---> if shotgun, then electronic.
---> if scissors, then rock...  //  this line edited

Greg wrote:

Mark Leavy wrote: You could almost write a book covering each of these assets in detail.  You could fill chapters discussing the various options currently available and the relative tradeoffs between security and simplicity.

What a great update to Harry Browne's Permanent Portfolio that would be!

https://www.youtube.com/watch?v=zbqur1e4mtY&t=0m52s

That is my response to your funny there Mark.

Subtle to the point of formlessness
Dry as the desert sands
My chuckles stay within
But the humor elevates my spirit

dualstow wrote:
Gone are the days when we were singing the praise of I-Bonds (one kind of US Savings Bonds) in so-called deep cash, but they'll come back into favor one day.

Well, I'm still singing the praises of I-bonds. The 30-year tax deferral, with no state or local taxation, combined with guaranteed inflation adjustment, is just what the doctor ordered in New York City and NY State, among other jurisdictions.

As to purchase limits, there are workarounds.

I more than suspect that I-bonds will become popular again (especially for those folks who failed to buy them annually for a number or years) when interest rates come roaring back to, say, 3-5%. And trust me,  interest rates *will* come roaring back one of these days, very likely when we least expect them. When they will come back, and for how long, I don't have a clue.