tag:blogger.com,1999:blog-4751610667110065763.post9182677145506679774..comments2023-10-13T14:07:08.908-04:00Comments on HowtoInvestOnline: The Permanent Portfolio: Pros and Cons for Canadian Savers and RetireesCanadianInvestorhttp://www.blogger.com/profile/05645767559302303541noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-4751610667110065763.post-29284493083387403022014-10-09T18:12:04.114-04:002014-10-09T18:12:04.114-04:00Hi Anon, The difference lies in using nominal retu...Hi Anon, The difference lies in using nominal returns, which gives the -1.6% and real inflation-adjusted returns, which gives the -10.4% result.CanadianInvestorhttps://www.blogger.com/profile/05645767559302303541noreply@blogger.comtag:blogger.com,1999:blog-4751610667110065763.post-46552877583195279032014-09-30T08:43:33.593-04:002014-09-30T08:43:33.593-04:00I get totally different results when I use the Sti...I get totally different results when I use the Stingy Investor tool.<br />For example: the year 1975: Gold returned -21.8%; T-Bills 7.5%; L-term Bonds 8%; TSX 18.5%. This gives me a total return of 3.05% (minus 4.5% withdrawal for a total of -1.6%). In your example, it was less than -10%. Can you explain the difference?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4751610667110065763.post-57620804153262864942014-04-23T16:13:12.560-04:002014-04-23T16:13:12.560-04:00Hi Cristian, Good comments that make me think it i...Hi Cristian, Good comments that make me think it is worth exploring further the options for holdings to implement a Permanent Portfolio in ways that are effective, practical, low cost, convenient, etc.<br /><br />CanadianInvestorhttps://www.blogger.com/profile/05645767559302303541noreply@blogger.comtag:blogger.com,1999:blog-4751610667110065763.post-37841046032911293112014-04-22T23:14:07.173-04:002014-04-22T23:14:07.173-04:00Good post, as usual.
I have a few comments:
1) Thi...Good post, as usual.<br />I have a few comments:<br />1) This may be an awful time to invest in long government bonds. I personally chose BMO Discount Bond Index ETF (ZDB) since it holds mostly government bonds, however sold at a discount, meaning less of a chance of a severe drop in case of raising interest (which will happen, sooner or later).<br />2) HISA for cash? It may be OK for a small account, not for a large one. HISAs are only insured up to $100,000. I preferred DEX Floating Rate Note Index Fund (XFR) as a replacement which not only does not fluctuate much in value but also raises the interest it pays as interest rates grow.<br />3) Gold ETF? Don't even think about it! Harry Browne recommended buying physical gold. Besides, I calculated how much it would cost me in commission if I invested in gold ETFs vs. gold coins. Since I am about 10 years away from retirement (hopefully) I assumed I was going to continue saving for the first 10 years. Over 30 years I would pay the equivalent of 2.83% of my savings for holding physical gold as opposed to 13.98% for IGT and a whopping 25.35% for CGL.C. So no gold ETFs for me, thank you! My gold coins are doing just fine in my $45/year safety deposit box at the bank.<br />Cristiannoreply@blogger.com