Permanent Portfolio Forum
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I do not believe they are taxable at the state level.foglifter wrote: Thanks for a good input, MediumTex. Do you know if the interest payments from I bonds are taxable at the state level?
MediumTex, that is very interesting, are you saying instead of SHY for the cash portion we hold PRPFX/EDV 90/10? It would be nice if you can break down the holdings of the assets you are referring to. Also, is there a chart that one can look at see the progression of the Ibonds? This is an area I need to educate myself inI view the PRPFX/EDV 90/10 strategy and the ibonds in the PP cash portion to be the two best ideas I have come up with in the whole PP discussion.
.No, I believe PRPFX/EDV 90/10 was his idea for the whole PP. It's a good choice for those who wants it as simple as possible.LNGTERMER wrote:MediumTex, that is very interesting, are you saying instead of SHY for the cash portion we hold PRPFX/EDV 90/10?I view the PRPFX/EDV 90/10 strategy and the ibonds in the PP cash portion to be the two best ideas I have come up with in the whole PP discussion.
I'm not sure if I bonds have tickers... maybe you could just treat it as a MM fund - with a share price of $1.LNGTERMER wrote: Thanks foglifter, so in this case I am assuming you would still rebalance if the bands go off sync. How about a ticker for and I bond?
Ibonds are not traded and do not fluctuate in value.foglifter wrote:I'm not sure if I bonds have tickers... maybe you could just treat it as a MM fund - with a share price of $1.LNGTERMER wrote: Thanks foglifter, so in this case I am assuming you would still rebalance if the bands go off sync. How about a ticker for and I bond?
This is very simple, but what is your rational for 10% EDV? Why not just use PRPFX as is?PRPFX/EDV 90/10
PRPFX does not provide you with the LT treasury exposure that HB recommended. EDV helps fill this gap and causes PRPFX to simulate the HB PP performance more closely.LNGTERMER wrote: Thanks,This is very simple, but what is your rational for 10% EDV? Why not just use PRPFX as is?PRPFX/EDV 90/10
MediumTex wrote:PRPFX does not provide you with the LT treasury exposure that HB recommended. EDV helps fill this gap and causes PRPFX to simulate the HB PP performance more closely.LNGTERMER wrote: Thanks,This is very simple, but what is your rational for 10% EDV? Why not just use PRPFX as is?PRPFX/EDV 90/10
There are some charts over on the bogleheads board showing how EDV dampens the volatility of PRPFX.
It sounds simple, but a lot of thought (and trial and error) went into it.
Hey, MT: What about 90/10 PRPFX + A 30-year bond ladder?
The bond ladder probably doesn't give you enough volatility for purposes of this strategy.SmallPotatoes wrote: Hey, MT: What about 90/10 PRPFX + A 30-year bond ladder?