Using TIAA annuity in HB Permanent Portfolio

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Joined: Sat Feb 10, 2018 9:03 pm

Using TIAA annuity in HB Permanent Portfolio

Post by JMG » Sat Feb 10, 2018 9:15 pm

Hi. I'm thinking of following Harry Brown's Permanent Portfolio, which divides your investment funds into four buckets: equities, long bonds, cash (money market), and gold. I'm a teacher, so I have a TIAA account. While you are making contributions to your TIAA account, one of the investment options is what they call an "annuity." It's not the traditional retirement annuity that promises a stream of payments for life; instead, it is just an investment option that guarantees principal and a return of 2% a year. You can cycle in and out of it as you like.

I'm trying to figure out if I can substitute that annuity for the cash and gold buckets in the Permanent Portfolio (and then do the equities and long bonds in other vehicles). As I understand it, one of the main goals of the cash and gold buckets is to preserve your purchasing power in the future. I see the TIAA "annuity" as serving that same goal.

I'm persuaded by the logic of the Permanent Portfolio, but I'm trying to make it work with my accounts, which are in the Thrift Savings Plan, TIAA, and a 403(b) account in Voya.

This is my first post here, so any thoughts are welcome.



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