Search found 41 matches

by Dogs
Sat Feb 23, 2013 12:29 pm
Forum: Personal Investments
Topic: Sick of taxes on FI! Options other than Municipals?
Replies: 10
Views: 1791

Re: Sick of taxes on FI! Options other than Municipals?

Good point, although buying a rental property with negative cash flow so you can offset bond gains is moving well beyond "a stretch" and into the realm of ridiculous.
by Dogs
Sat Feb 23, 2013 12:24 pm
Forum: Personal Investments
Topic: Small Caps really necessary??
Replies: 26
Views: 3483

Re: Small Caps really necessary??

Also consider the expense ratio of the small cap or extended market fund. The difference in performance between the S&P 500 and the TSM is so slight that I don't consider it worthwhile to increase your ER for this purpose.

I personally like approximating the TSM as closely as possible, but I wouldn't add extended markets to do so unless I had access to the extended market admiral fund or the ETF.
by Dogs
Sat Feb 23, 2013 11:57 am
Forum: Personal Investments
Topic: Sick of taxes on FI! Options other than Municipals?
Replies: 10
Views: 1791

Re: Sick of taxes on FI! Options other than Municipals?

john94549 wrote:That's a different question. If you are in the RMD phase, I'm guessing you might be eligible to offset ordinary income with passive activity real estate losses. Social security doesn't count toward MAGI for this purpose. MAGI must be less than $150K for any offset. Max offset is $25,000 (which occurs at MAGI of $100K).
I would clarify this by saying that social security does count toward MAGI, but the 100k-150k limit for allowable passive loss is based on AGI, not MAGI. SS is not included in AGI. Aside from that, all the passive loss information is correct. I am not a tax guru but I do handle my rental property taxes myself and have read the applicable pubs. I don't see how it's relevant to OP, though.
by Dogs
Fri Feb 22, 2013 12:01 pm
Forum: Personal Investments
Topic: should I consider home equity part of asset allocation?
Replies: 27
Views: 8635

Re: should I consider home equity part of asset allocation?

I would consider it in terms of cash flow. In your case, the equity you build is going to end up reducing your living expenses once it's paid off or traded for a free and clear home. That is going to affect your cashflow, but it won't directly affect your portfolio since you don't plan to cash out. Looking at it this way, you won't include it in your AA, but you will factor it into your calculations when you determine how much you'll need in retirement. If it's paid off before retirement, you just free up more cash to funnel into your AA as desired. Any attempt to include a residence in a standard Boglehead AA would be very messy and could easily result in a crazy overweighting of bonds unless the residence was a very small portion of the p...
by Dogs
Thu Feb 21, 2013 3:35 pm
Forum: Personal Investments
Topic: Coffee House - Vanguard alternative
Replies: 19
Views: 3834

Re: Coffee House - Vanguard alternative

Thanks for the elaboration, pascalwager and retiredjg. That makes sense.
by Dogs
Thu Feb 21, 2013 3:33 pm
Forum: Investing - Theory, News & General
Topic: Total World portfolio
Replies: 14
Views: 2350

Re: Total World portfolio

nisiprius wrote:Finally, unless I am mistaken, a portfolio that includes a total U.S. "X" index fund and a total international "X" index fund actually does not need to be rebalanced--the indexes themselves automatically track the total cap-weighting of their market, and if they are initially purchased in the same percentages as global cap-weighting, they will stay that way.
Can you elaborate on this? Are you saying the US index fund tracks the movement of the US in relation to the world market? That doesn't sound right to me.
by Dogs
Wed Feb 20, 2013 3:16 pm
Forum: Personal Finance (Not Investing)
Topic: Purchase of Multi-family home
Replies: 22
Views: 2628

Re: Purchase of Multi-family home

KyleAAA wrote:I don't really agree with this analysis. You are assuming the current landlord has kept the rent the same for a reason. In my experience, it's just as likely that there is no good reason. Landlording isn't exactly an efficient market. It's full of small players who have absolutely no idea what they're doing. To assume this particular landlord must have hidden information guiding his actions is not wise, in my experience. If the numbers say something different, trust the numbers. Don't assume the current landlord knows what he's doing. The odds are against it.
+1, I am a small player and the rents I set feel pretty arbitrary. As long as I don't have a vacant property or a negative cashflow I'm happy.
by Dogs
Wed Feb 20, 2013 3:07 pm
Forum: Personal Investments
Topic: Coffee House - Vanguard alternative
Replies: 19
Views: 3834

Re: Coffee House - Vanguard alternative

pascalwager wrote:TISM doesn't provide much int'l diversification, but int'l small/value do.
Is this a typo? I would have thought TISM was the most diversified.
Scooter57 wrote:I am only putting 5% of my stock allocation into REITs because of my concern that rising interest rates over the next decade are going to put some pressure on the real estate sector.
Why do you overweight something if you are concerned about its future?
by Dogs
Fri Feb 15, 2013 9:29 pm
Forum: Personal Finance (Not Investing)
Topic: Is pro-rata gunna get me? (Backdoor Roth Question)
Replies: 15
Views: 1215

Re: Is pro-rata gunna get me? (Backdoor Roth Question)

Epsilon Delta wrote:It is better to have gains in a Roth than in a traditional IRA. It is not it is better to have no gains in a traditional IRA than to have gains in a traditional IRA.

This use of a MM account is pointless and the fact that it is widely repeated indicates that there is a complete lack of understanding on how the allocation (and form 8086) work.
Isn't it irrelevant if the account is only open a few days? Either way, you file form 8606. Either way, any interest and incurred tax is going to be negligible or nonexistent. What about the MM account indicates complete lack of understanding?
by Dogs
Tue Feb 12, 2013 2:04 pm
Forum: Personal Investments
Topic: Help with 403 options
Replies: 7
Views: 647

Re: Help with 403 options

This 8% return fund is an annuity guaranteed by a government body until a specific date. It is important to know who is guaranteeing it and when the rate is due to expire.

It can certainly serve in place of the bond portion of your asset allocation, but you should know the above information before investing in it.
by Dogs
Tue Feb 12, 2013 1:30 pm
Forum: Personal Investments
Topic: 403b Bad Choices!
Replies: 25
Views: 3577

Re: 403b Bad Choices!

The 457 contribution limit is considered separately from the 401k and 403b limits (those, however, are shared - you can't contribute 17.5k to a 401k AND 403b in the rare event that both are offered).
by Dogs
Fri Feb 08, 2013 12:00 pm
Forum: Investing - Theory, News & General
Topic: Charlie Ellis & Burton Malkiel say 0% bonds OK under 50
Replies: 155
Views: 30133

Re: Charlie Ellis & Burton Malkiel say 0% bonds OK under 50

Aside from risk management (of course AA and rebalancing both control that), doesn't the rebalancing add an additional return due to the buy-low sell-high result? Or is that factored into these graphs?

As a young investor with income rising I am comfortable with 100% equities, but I maintain an 80/20 allocation because I don't want to miss out on rebalancing returns. Is this wrong? Do the returns of that extra 20% of equity override the rebalancing returns, even if bond yields are around the inflation rate?
by Dogs
Fri Feb 08, 2013 11:35 am
Forum: Investing - Theory, News & General
Topic: Charlie Ellis & Burton Malkiel say 0% bonds OK under 50
Replies: 155
Views: 30133

Re: Charlie Ellis & Burton Malkiel say 0% bonds OK under 50

am wrote:Thought 80/20 has a better risk adjusted return, plus you can get some additional return from rebalancing.
+1

I don't object to the risk of 100% stocks but the ability to rebalance outside equities has got to be worth something! Rebalancing is one of the cornerstones of the whole Bogle approach.

Moving from 80/20 to 100/0 sounds like running away from current bond yields to the detriment of the whole principle of the lazy portfolio.
by Dogs
Fri Feb 08, 2013 11:20 am
Forum: Personal Investments
Topic: IRA Help
Replies: 6
Views: 869

Re: IRA Help

As Alan S says, a 404c is not actually your retirement plan, but a set of guidelines regulating your retirement plan. I would also agree that you need to find out more information about your plan.

Your employer's retirement plan is not going to affect your Roth IRA annual contribution limit, if that is what you are worried about.
by Dogs
Fri Feb 08, 2013 11:01 am
Forum: Personal Investments
Topic: Options for Partially Self-Employed Wife
Replies: 5
Views: 788

Re: Options for Partially Self-Employed Wife

The problem with the SEP IRA is that only 25% of your wife's self-employed income would be contributable.

At this point it looks like either a solo 401k or a SIMPLE IRA would work equally well for you. I would recommend the solo 401k as it has higher contribution limits (although at 10k she shouldn't reach either limit right now).

You should also look into the costs and hassles of setting up the retirement account you choose. If your wife never reaches the contribution limits (or you just don't want to contribute the maximum) it may be better to use the SIMPLE IRA just because it involves less paperwork and hassle.
by Dogs
Thu Feb 07, 2013 7:08 pm
Forum: Investing - Theory, News & General
Topic: Rebalancing only stocks/bonds but not US/international?
Replies: 13
Views: 1435

Re: Rebalancing only stocks/bonds but not US/international?

There is a wide range of acceptable US/Int allocations, but whatever you pick, you should stick with it and rebalance as necessary.

By letting your allocation vary you are losing all the possible sell-high and buy-low profits, even if you maintain the right risk tolerance by messing with your bonds.

I guess this would save you a minimal amount of time, but you might as well just go with a target retirement fund if simplification is your top priority.
by Dogs
Thu Feb 07, 2013 5:54 pm
Forum: Investing - Theory, News & General
Topic: Windsor I vs Windsor II
Replies: 4
Views: 1534

Re: Windsor I vs Windsor II

How can additional funds hurt current shareholders?
by Dogs
Tue Feb 05, 2013 6:54 pm
Forum: Personal Finance (Not Investing)
Topic: How many silver coins have you found
Replies: 28
Views: 5466

Re: How many silver coins have you found

I have to ask, you just went to your local bank and exchanged for rolls of coins? I'm thinking a bank is going to come up with a fee for something like this. Getting rolls of coins from the bank is usually easy and free. Re-depositing them can be tricky. If you use your own bank, you might end up getting your own coins back over and over (not to mention the tellers would end up hating you). If you use another bank, you generally either have to open an account or pay a fee. In my case, the big grocery chain where I live allows you to use the Coinstar for free if you get a gift certificate instead of cash! More dedicated coin roll hunter might even open multiple bank accounts so they can go through huge sums of coin very quickly, depositing ...
by Dogs
Tue Feb 05, 2013 6:37 pm
Forum: Personal Consumer Issues
Topic: testing silver coins.... help
Replies: 22
Views: 2831

Re: testing silver coins.... help

Joe S. wrote:It is hard to resell 1 ounce silver ingots and make a decent profit due to the large markup between what you buy them for and what you sell them for.

I am unfamiliar with junk silver prices and spread.
Larger ingots are no more profitable to resell than 1oz coins.
by Dogs
Tue Feb 05, 2013 3:31 pm
Forum: Personal Consumer Issues
Topic: testing silver coins.... help
Replies: 22
Views: 2831

Re: testing silver coins.... help

Joe S. wrote:It's hard to resell 1 ounce silver ingots, even if they are genuine. If you want to invest in silver you should buy larger ingots/bars. There's less of a markup between buying and reselling. (Not that I recommend buying silver at all.)
How is it hard to resell 1 oz ingots?

Also, the lowest premium silver is junk silver (circulated silver US coins), not large bars.
by Dogs
Tue Feb 05, 2013 3:17 pm
Forum: Personal Consumer Issues
Topic: Kaspersky Update Breaks Internet Access For Windows XP Users
Replies: 6
Views: 1072

Re: Kaspersky Update Breaks Internet Access For Windows XP U

SSSS wrote:
stratton wrote:their forum is lit up with angry customers
How?
Not their internet forum, a Roman-style forum. Kaspersky maintains an open square in Moscow where their customers can congregate and voice their concerns when their Internet is down. The forum is lit up with all the torches brought by the mob. I doubt there are any pitchforks, though. Who can find a pitchfork in the middle of Moscow on short notice without ordering one online?

NOBODY THAT'S WHO
by Dogs
Tue Feb 05, 2013 3:06 pm
Forum: Personal Consumer Issues
Topic: testing silver coins.... help
Replies: 22
Views: 2831

Re: testing silver coins.... help

You might try this: http://www.youtube.com/watch?v=89ATeNy3DIo You'd need a micrometer or calipers and the ultrasonic thickness tester to do it. You might be able to find a bullion buyer who is properly equipped if you don't have access to the instruments or don't want to spend the money to buy the instruments. Rental might also be an option for the ultrasonic thickness tester. Calipers are inexpensive. gatorman This is absolutely the best way to properly test your silver (or gold, platinum or any other metal, for that matter). An cheap ultrasonic thickness gauge will run you around $100-$150. It wouldn't be a good investment for OP to just test a single silver round, but I would recommend it to anyone planning on regularly buying off-bran...
by Dogs
Mon Feb 04, 2013 6:39 pm
Forum: Personal Investments
Topic: In a strange situation - portfolio review/advice
Replies: 11
Views: 1960

Re: In a strange situation - portfolio review/advice

The target retirement funds that have been mentioned several times in this thread have minimum investments of $1000, so that is where your $2000 can go.

Just pick the furthest retirement date to get the highest stock allocation. Target Retirement 2060 is about 90% equity.

Or put them in an ETF if you can. Either way would be fine.
by Dogs
Sun Feb 03, 2013 3:23 pm
Forum: Personal Finance (Not Investing)
Topic: Must I make 2012 Roth contributions BEFORE filing taxes?
Replies: 7
Views: 1227

Re: Must I make 2012 Roth contributions BEFORE filing taxes?

Your contributions to a Roth IRA shouldn't be showing up on your tax return at all, so it doesn't matter.
by Dogs
Fri Feb 01, 2013 6:52 pm
Forum: Personal Investments
Topic: Locking in short-term capital gains during unemployment?
Replies: 22
Views: 3541

Re: Locking in short-term capital gains during unemployment?

So you contributed to Roth IRA for 2013. That can be reversed. Find out about "recharacterization". Wouldn't recharacterization mean turning the Roth IRA into a TIRA? I believe you can recharacterize back to no IRA at all - as if it never happened. According to these IRS instructions, http://www.irs.gov/instructions/i8606/ch01.html#d0e470 recharacterizing is only the conversion of one type of IRA to another. If you are ineligible for any IRA I do not see how it applies. OP would need to look at http://www.irs.gov/publications/p590/ch01.html#en_US_2011_publink1000230873 The only way to correct the excess contribution without paying additional penalties seems to be to withdraw the excess contribution before the following April (tha...
by Dogs
Fri Feb 01, 2013 5:03 pm
Forum: Personal Investments
Topic: Locking in short-term capital gains during unemployment?
Replies: 22
Views: 3541

Re: Locking in short-term capital gains during unemployment?

retiredjg wrote:So you contributed to Roth IRA for 2013. That can be reversed. Find out about "recharacterization".
Wouldn't recharacterization mean turning the Roth IRA into a TIRA? He couldn't do that, because with no income he doesn't qualify for any kind of IRA.

Reversing his contributions would mean withdrawing the original contributions plus net income attributable. The NIA is what OP should research and calculate in order to get rid of these erroneous contributions.
by Dogs
Fri Feb 01, 2013 2:19 pm
Forum: Personal Investments
Topic: Locking in short-term capital gains during unemployment?
Replies: 22
Views: 3541

Re: Locking in short-term capital gains during unemployment?

mancuso wrote:
MN Finance wrote:
linuxuser wrote:Also look into tIRA to Roth IRA conversion.
I wish I had done that in 2007.

+1. If it's an option for you at all, I would convert into high brackets rather than realize cap gains
I've already maxed my Roth IRA contributions for 2012 and 2013.
I'm 38, single, no dependents.
If you have a TIRA that you previously funded, you could look into converting all or some of it into a Roth IRA. You would lock in your low current tax rate. It does not count toward the contribution limit.

Of course if you do not have a TIRA then it is irrelevant.
by Dogs
Wed Jan 30, 2013 7:35 pm
Forum: Investing - Theory, News & General
Topic: Treat your mortgage as a "negative exposure" to bonds?
Replies: 188
Views: 14997

Re: Treat your mortgage as a "negative exposure" to bonds?

am wrote:Kind of silly if you ask me to lend money to the gov., corporations etc. at 1.6% via TBM when you have a mortgage that is higher in %?
When stocks decline you can't pull money back out of your mortgage to buy stocks without taking out another loan with interest, and if you did that, why pay it off in the first place?
by Dogs
Wed Jan 30, 2013 4:27 pm
Forum: Personal Finance (Not Investing)
Topic: How many silver coins have you found
Replies: 28
Views: 5466

Re: How many silver coins have you found

I spent a short time coin roll hunting. In $300 of dimes, $300 of quarters and $150 in nickels, I found four silver dimes. It is certainly not profitable but it is a lot of fun! It feels like hunting for treasure. I have never found anything in my change, but I am young and don't use cash much.

I also found an 1862 Belgian 10-centimes coin in a nickel roll! It was in poor condition and not worth anything, but very exciting!
by Dogs
Wed Jan 30, 2013 4:20 pm
Forum: Investing - Theory, News & General
Topic: Treat your mortgage as a "negative exposure" to bonds?
Replies: 188
Views: 14997

Re: Treat your mortgage as a "negative exposure" to bonds?

555 wrote:If you take the totality of all your current and future assets and liabilities, then think of that as a round hole, while percentage-based asset allocation is a square peg.
I wholeheartedly agree with this. I am a new investor and there is literally no way to include any aspect of my two rental properties in my AA without being forced to sell them. Any rule is going to be riddled with exceptions. You also can't rebalance properly with a house. It doesn't fit. I would personally treat a mortgaged house in terms of income, not as an asset, but the only hard and fast rule I can imagine being applied to the mortgage is to not consider it as part of your AA.
by Dogs
Tue Jan 29, 2013 6:28 pm
Forum: Investing - Theory, News & General
Topic: Replace Bond Allocation with Permanent Portfolio?
Replies: 6
Views: 1285

Re: Replace Bond Allocation with Permanent Portfolio?

Call_Me_Op wrote:I did not mean messy in terms of the number of funds, but in terms of transparency. You really want to understand and control your allocation to the basic asset classes - stocks, bonds, cash, gold, etc. I am a purist, in the sense that I want to define an asset allocation in terms of the basic asset classes, implement that asset allocation using low cost vehicles, and rebalance as defined by my IPS. That approach yields maximum transparency, organization, and control, as well as rock-bottom costs.
I am not sure what you mean by this. The portfolio I am considering is defined in basic asset classes and can be implemented in low cost vehicles. I do have an IPS that controls my allocations.
by Dogs
Tue Jan 29, 2013 5:27 pm
Forum: Investing - Theory, News & General
Topic: Replace Bond Allocation with Permanent Portfolio?
Replies: 6
Views: 1285

Re: Replace Bond Allocation with Permanent Portfolio?

Thanks wesley, it is good to know that the ER won't be an issue.
Call_Me_Op wrote:Not to me. The PP is allocated equally among 4 asset classes. If you have a 50/50 stock/bond portfolio and replace bonds with PP, you will end-up with a portfolio that is 62.5% stocks, 12.5% bonds, 12.5% gold, and 12.5% cash. Now there's nothing wrong with this portfolio - if it's really what you want. But it seems like a messy way to construct a portfolio.
It is kind of messy. I wish PERM or PRPFX had more reasonable ERs (and actually adhered to the PP).

It may be that in the end there won't be enough of an effect on the portfolio to justify the added complexity. That is one thing I am trying to figure out.
by Dogs
Tue Jan 29, 2013 3:51 pm
Forum: Investing - Theory, News & General
Topic: Replace Bond Allocation with Permanent Portfolio?
Replies: 6
Views: 1285

Replace Bond Allocation with Permanent Portfolio?

It sounds like the role of bonds in a three-fund portfolio is stability, and to provide a separate asset class for rebalancing purposes. The PP should theoretically be more stable than bonds, since it is designed specifically to weather all economic conditions. It is also not correlated with stocks, so it should be just as suitable as bonds for rebalancing.

The only downside I can think of is that the ER will be higher due to the gold, but if some of the gold is held as ETF's it will cut back on most of the bullion transaction costs. The added expense over a single total bond fund shouldn't be too significant.

Does this make sense?
by Dogs
Fri Dec 21, 2012 9:57 pm
Forum: Personal Investments
Topic: Your International vs. U.S. Stock Allocation?
Replies: 73
Views: 12687

Re: Your International vs. U.S. Stock Allocation?

Everybody seems to agree that it makes sense to hold at least 20% international because it lowers volatility a lot. Everyone also seems to agree that it makes little sense to allocate more to international than its global portion of the market, which is something like 55-60%. So I picked 40% international because it was in the middle.
by Dogs
Wed Dec 19, 2012 3:29 pm
Forum: Personal Investments
Topic: Roth IRA - Fideltiy vs Vanguard vs Wells Fargo
Replies: 22
Views: 20978

Re: Roth IRA - Fideltiy vs Vanguard vs Wells Fargo

Just curious, for those of you using WF, can you access your IRA at the moment? Their main site has been down all day and I am wondering if that cuts off IRA services.

Very helpful thread!
by Dogs
Sun Nov 11, 2012 7:45 pm
Forum: Investing - Theory, News & General
Topic: Does government keep records of gold bullion,coin purchases?
Replies: 22
Views: 9821

Re: Does government keep records of gold bullion,coin purcha

Capital losses from selling bullion at lower prices than you bought it for CAN be deducted. However, there are caps on claimable losses per year, so you would need to consult a professional to determine if you can deduct the full amount. You cannot deduct anything if the bullion is held in a tax-advantaged account (401k/IRA). A 1099b form: Only applies to an individual selling to a dealer. Is required for sales of over 1000 oz of silver. American Silver Eagles, Canadian Silver Maples, and Australian Silver Philharmonics are completely exempt from this requirement. Is required for sales of over 1kg of gold. American Gold Eagles, American Gold Buffaloes, and Gold Australian Philharmonics are completely exempt. South African Krugerrands, Canad...
by Dogs
Sun Nov 04, 2012 6:21 pm
Forum: Personal Finance (Not Investing)
Topic: Does paying add'tl mortgage principal always reduce interest
Replies: 27
Views: 6208

Re: Does paying add'tl mortgage principal always reduce inte

Every month, you are charged interest based on the principle remaining. That is why your ratio of interest charged vs principal remaining will not change.

Yes, if you have a 25 year mortgage and pay the minimum for a 15 year mortgage every month, your total interest paid will generally be equal to a 15 year mortgage. EDIT: This assumes the two mortgages are at the same interest rate which as tfb points out will probably not be the case.

Every bit of additional principle paid will reduce the total interest payments.
by Dogs
Fri Oct 26, 2012 9:34 pm
Forum: Personal Investments
Topic: Tax Implications for Gold in PP [Permanent Portfolio]
Replies: 10
Views: 1383

Re: Tax Implications for Gold in PP [Permanent Portfolio]

Craig, Those are excellent points! With the state tax advantages of long term bonds, could they be more tax efficient than stocks? I am at 7-7.5% state and 25% federal income tax rates. Or is that a specific enough question to ask a professional? You can also do a hybrid approach where you hold some gold outside tax-deferred, but keep a portion as ETFs inside the tax-deferred. That way, if you do have to rebalance you can do it with the ETFs in the tax deferred area and not pay taxes on the gains. You can then use the profits to build up your other assets inside the tax-deferred space. You could also consider aiming to hold half the gold physically in taxable and the other half in tax sheltered. This would avoid taxes due to minor fluctuati...
by Dogs
Fri Oct 26, 2012 8:17 pm
Forum: Personal Investments
Topic: Tax Implications for Gold in PP [Permanent Portfolio]
Replies: 10
Views: 1383

Re: Tax Implications for Gold in PP [Permanent Portfolio]

Johm221122 wrote:Could you put bonds and cash in 401,gold in Roth and stocks in taxable
Gold in Ira
http://www.smartmoney.com/taxes/estate/ ... 886856846/
John
Yes, I could. As I said in my post I am aware of the rules for putting gold in an IRA. I want to know if it is viable to hold the gold personally (in which case I cannot use an IRA).

That is why I am trying to find a historical simulation of the Permanent Portfolio assuming gold is taxed 30% (estimated) on sale.
by Dogs
Fri Oct 26, 2012 7:54 pm
Forum: Personal Investments
Topic: Tax Implications for Gold in PP [Permanent Portfolio]
Replies: 10
Views: 1383

Re: Tax Implications for Gold in PP [Permanent Portfolio]

Epsilon Delta wrote:Gold is more favorably taxed than interest (since taxation is deferred until a gain is realized). Why aren't you worried about the cash and bonds?
Because I can put cash and bonds in my Roths. I can't put personally held gold in a Roth.
by Dogs
Fri Oct 26, 2012 6:33 pm
Forum: Personal Investments
Topic: Tax Implications for Gold in PP [Permanent Portfolio]
Replies: 10
Views: 1383

Tax Implications for Gold in PP [Permanent Portfolio]

I've been reading through several of the Harry Browne Permanent Portfolio megathreads on this forum and they are very interesting. I'll be starting to invest consistently for retirement soon and I'm trying to choose a good rebalancing portfolio. Holding physical bullion in a PP sounds very nice, but my issue is that I don't think I can max out my tax-advantaged accounts. For this reason, my gold would be at a noticeable disadvantage since it would be fully taxed. (I'm aware that you can put physical gold into an IRA but I am talking about personally held gold.) I want to compare the PP to the three-fund portfolio you folk are so fond of, but I want to take into account the fact that my physical gold would be disproportionately taxed. I woul...