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Interesting, I have 25% in stocks. I didn’t know that it’s the permanent portfolio. What else is in there.
well the pp is a very specific model with very very powerful opposing asset classes that can lift as hard as equities can when it is their day in the sun ..it bears no resemblance to holding a conventional portfolio which is 25% equities and the rest intermediate and short term bonds and cash .
it has a 50 year history
the pp is :
25% total market or s&p 500 fund
25% GLD or iau gold
25% TLT LONG TERM TREASURIES
25% SHY OR MONEY MARKET
well the pp is a very specific model with very very powerful opposing asset classes that can lift as hard as equities can when it is their day in the sun ..it bears no resemblance to holding a conventional portfolio which is 25% equities and the rest intermediate and short term bonds and cash .
it has a 50 year history
the pp is :
25% total market or s&p 500 fund
25% GLD or iau gold
25% TLT LONG TERM TREASURIES
25% SHY OR MONEY MARKET
How has this portfolio do compare to the others in the past years, not just recently.
We just took a chunk out to pay off our house. Trying to diversify. Our financial advisor was not happy about that but I don't care. I want diversity in our portfolio and sorry, but it's not all going to be invested in any one area.
I'm not after sexy massive gains (and risks) but I think it's wise to pay off a mortgage most of the time, especially if you're in the first 12 or so years of a 20 or 30 year note (or more - yikes!). Especially if you're in a consistently appreciating market, even if it's slow appreciation. Between appreciation and not paying front loaded interest, it's a good return. At least that's how I see it but every situation has differences and nuances.
We just took a chunk out to pay off our house. Trying to diversify. Our financial advisor was not happy about that but I don't care. I want diversity in our portfolio and sorry, but it's not all going to be invested in any one area.
I'm not after sexy massive gains (and risks) but I think it's wise to pay off a mortgage most of the time, especially if you're in the first 12 or so years of a 20 or 30 year note (or more - yikes!). Especially if you're in a consistently appreciating market, even if it's slow appreciation. Between appreciation and not paying front loaded interest, it's a good return. At least that's how I see it but every situation has differences and nuances.
This strikes me as a wise move, even though you might could earn a higher rate of return than the interest rate on your mortgage. Not having a mortgage is a wonderful feeling.
This strikes me as a wise move, even though you might could earn a higher rate of return than the interest rate on your mortgage. Not having a mortgage is a wonderful feeling.
Thanks. Every situation is different, so what works for one family might not work for another.
The thing is, people always talk about mortgage interest rates but what they don't seem to be talking about is that this interest is FRONT LOADED, so that you pay more for interest than toward the principal for many years. So while you're technically paying 3 percent or whatever, you're really paying more for years into a mortgage. Meanwhile most real estate markets are at least slowly growing in value.
Last edited by KathrynAragon; 05-09-2019 at 09:19 AM..
I've got half of my retirement fund in government securities --- I've already taken action. I'm not relying on the advise of financial planners who say, trust us, and just keep contributing. I saw what happened in 2008 and if it happens again, and there's no bailout that allows the market to rebound, I'm not going to be able to retire at a decent age. I'm giving up some gains in exchange for downside protection, and would suggest anyone else who wants to retire within 10 years, do the same.
For the record, I am not a financial planner.
I am just a regular investor, and I put nearly all of my personal earned money on the line in the stock market in exactly the same way as I am describing here.
The job I do for a living is unrelated to the professions of finance, economics or investing.
This is all the money I personally use to run my entire household. I have a house, a wife, and two children.
I do not listen to or trust the advice of financial planners. They usually don’t know what they are talking about. Therefore, I don’t suggest anyone use them either.
If you still want to listen to a financial planner, then that is completely on you.
You maybe asking - How did I learn all this stuff about finance if I don’t work in the field?
The answer is I taught myself all this through reading books and publications over a period of many decades. It was very painstaking, but I did that because I thought I had to for my own financial well-being and security. Nobody, no teacher, no school or university is going to teach you the stuff.
The reason is because they don’t know it themselves.
Now, I want to help others understand what I’ve learned and share my knowledge and understanding and I guess I also have too much free time on my hands and have nothing better to do.
You win just by staying invested. Plain, boring, vanilla, and over time it works out well. Listen to the wisdom of BigCityDreamer.
I want to tweak that a bit though yes, I agree with BigCityDreamer.
You win just by staying invested in diverse investments. Don't bet the farm on any one type of investment. Don't get too heavy in one area or lopsided. There are a lot of vehicles to invest in.
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