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My wife and I are retired and we carry an umbrella. Our reasoning is this: The US is a very litigious society, with more attorneys per capita than any other nation. We drive a car, so there is a meaningful chance of being in an accident that injures someone. Even a frivolous lawsuit would involve su...

This sort of situation is why it's important to have some level of collision coverage, even if it's subject to a very high deductible. Having coverage means you deal with your insurance company and your insurance company goes to bat for you against the responsible party and their insurance. They're...

letsgobobby wrote:Long bonds, stocks, and gold are all at or near all time highs. I just can't get excited about the future return prospects of PP from current levels.

I think you make a good point. Is there a portfolio plan you do feel optimistic about?

John

TO39 wrote: "I read the links. What do you think of the idea of selling IAU and buying GTU when there is a -3% discount? and doing the reverse when there is a +3% premium?" It sounds like a reasonable strategy. Personally, I'd rather not try it because once I start doing market timing I'm ...

Responding to the original poster: Some reasons why I like the Permanent Portfolio: The plan recognizes uncertainty in financial markets, and doesn't try to predict outcomes. The plan has uncorrelated assets that can do well during times of prosperity, inflation, deflation and recession. Every alte...

Responding to the original poster: Some reasons why I like the Permanent Portfolio: The plan recognizes uncertainty in financial markets, and doesn't try to predict outcomes. The plan has uncorrelated assets that can do well during times of prosperity, inflation, deflation and recession. Every alter...

"Doesn't that beautifully illustrate nisiprius' point? You had to guess on which one was going to be the best performer, the one that was chosen based on the concerns of the day turned out not to be it - why would anyone think if they were standing at that point in time they would have been the...

Hi Nisiprius; Craig R will no doubt offer a better explanation, but my take on it is that the Permanent Portfolio mutual fund PRPFX is modeled after an early version of the portfolio that is slanted toward protection in an inflationary environment. It includes Swiss franc assets and is light on the...

Incredibly, it seems to have done just as well as even a 100% stock portfolio over the past 30 years or so, despite the fact that it only holds 25% stocks... and yet it has done so with significantly less volatility. Why don't more people use it? Why don't you use it, personally? I don't use it per...

Yes, my understanding is that the rule of thumb is a per year premium comparison to the value of the car. Because comprehensive looks really inexpensive, and provides coverage for just about everything but collision (vandalism, theft, flood, fire among other perils), I'd be inclined to keep that cov...

A rule of thumb I've seen is that if your total comprehensive and collision premium exceeds 10 percent of the vehicle's market value, it's probably not worth your while to continue to carry these coverages.

Good luck whatever you decide!

John

Maybe you've already seen it, but here is one website that offers a list of companies state by state that offer insurance for domestic partners; http://personalinsure.about.com/cs/healthinsurance1/a/aa052204a.htm I'm not affiliated with this website, and offer it merely as a possible reference. Best...

Some articles discussing flood and earthquake insurance: http://floodsafety.com/national/property/risk/index.htm excerpt: “The term "100-year flood" is misleading because it leads people to believe that it happens only once every 100 years. The truth is that an uncommonly big flood can hap...

After getting lucky with some investments early in my working life, I failed to develop a comprehensive plan for saving and investing that would consider a variety of economic scenarios. It might have been more difficult in those pre-Boglehead days, but I could have found a reasonable plan instead o...

Sorry to change the subject a little bit. However, can someone that's a little smarter than me tell how Gold affects the performance of the Precious Metals & Mining Fund (VGPMX)? Always been curious how they are correlated. Obviously there is some sort of correlation. I doubt that I'm smarter t...

Here is one website that discusses commodity funds: http://www.altruistfa.com/commodityfunds.htm Excerpt: “In general, we would recommend only a fairly small fraction of any portfolio be allocated to this asset class.  Further, since futures contracts (and derivatives thereof) tend to be quite tax-i...

Getting an insurance premium increase you feel is excessive is probably a good time to explore quotes from other insurers. It's generally best to keep homeowners, auto and umbrella with the same company in order to avoid possible claims problems in the event of a large loss as well as to obtain opti...

Here's the only one I'm aware of: Precious Metals and Mining VGPMX https://personal.vanguard.com/us/funds/snapshot?FundId=0053&FundIntExt=INT#tab=0 “Although this fund is not a pure gold or precious metals fund, it invests solely within the precious metals and mining industries.” Scary volatilit...

When I retired, I had 403b accounts with Vanguard and another mutual fund company I won’t name. I tried to set up rollover IRAs with a brokerage account at both companies. Vanguard’s Concierge Services took care of everything for me over the phone. The other fund company wanted paperwork filled out ...

It’s easy for me to rationalize market timing while forgetting that I have to do it twice, once getting in and again getting out. Oh, and I need to forget about my track record - it’s awful. Then I probably should ask myself “Am I really the only one who has thought of this?” Maybe I'm better off re...

Our umbrella policy says: “Policy period and territory. We cover personal injury and property damage which takes place anywhere during the time this policy is in force. If you travel outside the United States, you must maintain the equivalent of your primary insurance. We pay only those damages whic...

That's a good question. Our auto policy says: “These conditions apply to all Coverages in this policy. 1. TERRITORY
 This policy applies only to accidents, occurrences or losses during the policy period within the United States of America, its territories or possessions, or Canada or when the auto i...

Hi Thom; With your income, and a daughter you'll likely want to help with college someday, I'd buy an umbrella liability policy. The cost is trivial compared to what you spend on gas for your car. The umbrella liability insurer will defend you if you get sued (instead of you having to hire and pay f...

I recently ordered renewals of some new medications from CVS Caremark by phone. The lady I spoke with was friendly and very helpful. I received an email confirmation 3 business days later that my prescription renewal had been approved by my doctor and the meds would be mailed to me. The price for a ...

Archie Sinclair wrote:If one doesn't own a home or a car, is it still possible to get umbrella insurance?

It should be, as long as you have personal liability and non-owned auto liability for the limits required by the umbrella underwriter.

John

Here's one article that discusses the difference between replacement cost and market value: http://www.insurance4usa.com/replacement-cost-market-value.cfm excerpt: “There are different methods to determine the value of a house. Market value is the price paid for your house. Replacement cost is the p...

I have looked into umbrella insurance recently. Alot of folks on this forum state that it's a very minimal addition to their current insurance. I live in North Carolina. I have a home, 1990 Taurus station wagon, 1992 Chevy Silverado, 1998 Mazda, 2000 Ford F-150, 2005 Grand Prix, 1996 Harley, and a ...

Hi Jim: Trying to address your question. We have automobile and umbrella insurance with GEICO. The umbrella policy specifically lists punitive damages among things not covered in the exclusions section. It also says, in the definition of covered "damages", that punitive damages are not inc...

Most umbrella policies I've read also exclude coverage for anything that happens during the commission of a crime. I wonder how that works with respect to driving infractions committed during an at-fault accident. People often get written up for something when they're in an at-fault accident. At wh...

Here's a possible reference source: http://www.irmi.com/expert/articles/2011/hungelmann04-personal-risk-management.aspx Scroll down for link to stand-alone umbrella policy comparison chart. According to this chart, Auto Owners umbrella policy will “follow form” primary coverage for punitive damages....

According to this website, punitive damages are not insurable in all states: http://www.mcandl.com/puni_frame.html Of course just because the damages are sometimes insurable by state law is a different issue from whether your policy does or does not contain an exclusion for punitive damages. Umbrell...

I thought Grt2bOutdoors' advice was very good. Here's a general discussion of some things to consider when deciding what insurance to buy: http://www.essortment.com/types-insurance-19733.html I recommend buying uninsured motorists coverage for the same limits as your automobile liability and the hig...

Our only stock investment is Vanguard's Total World Index (symbol VT) which includes a bit under 50% "North American" stocks. So our international stock allocation is 50% plus whatever VT holds in Canadian stocks.

John

Hi Jim; I agree higher limits are appropriate, not only because you live in a large city but also to have the insurance company highly motivated to defend you against a lawsuit. We have a $1million umbrella liability policy which costs $105 per year. I'd buy it even if it cost more, which it probabl...

One article that discusses when to consider buying non-owned auto coverage: http://www.families.com/blog/no-car-do-you-still-need-auto-insurance excerpt: "Most drivers can get just about the same insurance coverage when renting a car by purchasing the car rental insurance offered by the rental ...

Welcome back, Munchkin Man, and congratulations on the weight loss!

John

I agree with the previous posters that uninsured/underinsured motorists coverage is a good idea. We have uninsured motorists coverage for the same limits as our automobile bodily injury liability coverage. UM coverage is broader than medical insurance in the kinds of bills it will pay, passengers in...

I remember in 1979 when gold hit $400 an ounce and I thought "Holy cow! This is crazy!" So I sold my Krugerrands and gold mining stocks. A few months later gold hit $800 an ounce. That memory led me to believe the cyclical peak price of gold = "Holy cow!" x 2. I'm not brave enoug...

Thanks for the link to the podcast, Papito. Great explanation!

John

On a somewhat related level, why is the federal government always on the hook for the effects of natural disasters and not private insurance? i.e Katrina, Sandy... Can this be answered w/o going into politics? I thought this was a good discussion of some reasons why the government is involved in fl...

Hi Paul; I believe the deductible only applies to the property coverage and not the liability or medical payments coverages. Out of curiosity I called our renter's insurance carrier and asked them what it would cost to increase our medical payments from $1,000 to $5,000 (their maximum for med pay). ...

Hi Paul;

Here's a recent discussion on medical payments:

viewtopic.php?f=2&t=110463

John

I wasn't smart enough (or brave enough!) to buy long term bonds in the early 80's when they were paying double digit returns. For awhile though, our company savings plan offered a guaranteed 11% annual return along with a 50% match for your 401k contribution, so I picked that instead of taking a cha...

I agree with those who advocate carrying med pay coverage. Here's an article that elaborates on reasons for carrying this inexpensive coverage: http://voices.yahoo.com/homeowners-insurance-medical-payments-47103.html excerpt: "Medical payments coverage on your homeowners policy is no-fault. Tha...

I thought these articles had some sensible advice: http://ezinearticles.com/?Stupid-Car-Accident---Should-I-Report-the-Claim?&id=790258 excerpt: “The repercussions of not filing a claim are severe. The insurance company can decline payment for your damages or damages to any third party making cl...

Bogleheads.org is geared to buy-and-hold investing. Probably this isn't the best place to strike up a market timing strategy discussion.

Good luck.

John

Happy Birthday, Taylor!

And thanks for who you are.

John

Agree with the previous posts. Luckily, we've never had a claim with GEICO, our current insurer, so I can't testify to "no hassle" claim service. Needing to file an insurance claim that involves a lawsuit for seven figures is pretty much by definition "a hassle", so not sure how ...

Our average bond duration is 8.6 years in a portfolio which combines Wellesley Income, Ginnie Mae, and a Permanent Portfolio-style allocation.

(edited to correct typo)

John

Hi folks. Could somebody please verify that the only difference between these two is the expense ratio? Could somebody also verify that when a fund is labeled as "institutional", that really only means a large initial purchase? As opposed to meaning the fund cannot be purchased by an indi...