Simplicity or Security
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Simplicity or Security
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?
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?
- lordmetroid
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Re: Simplicity or Security
I am very comfortable using ETFs and mutual funds.
- Mark Leavy
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Re: Simplicity or Security
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!
What a great update to Harry Browne's Permanent Portfolio that would be!
Re: Simplicity or Security
https://www.youtube.com/watch?v=zbqur1e4mtY&t=0m52sMark 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!
That is my response to your funny there Mark.
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Re: Simplicity or Security
Non-treasury bonds are really not appropriate when building the PP for a variety of reasons.BearBones wrote: For bonds, similar:
1. Directly held
2. TLT
3. Non-treasury
https://web.archive.org/web/20160324133 ... ation-faq/
Everything else on your list seems fine.
Re: Simplicity or Security
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.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.
- dualstow
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Re: Simplicity or Security
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.
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.
Isn't that the same thing as physical?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.
Last edited by dualstow on Fri Jan 29, 2016 3:28 pm, edited 1 time in total.
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- dualstow
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Re: Simplicity or Security
That's why I mention it. It doesn't appear to make sense.IDrinkBloodLOL wrote:Would that make sense with what I appeared to be saying?dualstow wrote:Isn't that the same thing as physical?
I assume you mean something like --> if hackers, then paper.
---> if shotgun, then electronic.
---> if scissors, then rock... // this line edited
Last edited by dualstow on Fri Jan 29, 2016 6:04 pm, edited 1 time in total.
9pm EST Explosions in Iran (Isfahan) and Syria and Iraq. Not yet confirmed.
Re: Simplicity or Security
Subtle to the point of formlessnessGreg wrote:https://www.youtube.com/watch?v=zbqur1e4mtY&t=0m52sMark 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!
That is my response to your funny there Mark.
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My chuckles stay within
But the humor elevates my spirit
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A: “Not unless round is funny.”
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Re: Simplicity or Security
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.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.
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.