Comments on: A Fall 2009 Update – You did rebalance, right?

By: craigr

craigr — Thu, 04 Mar 2010 04:09:59 +0000

I know nothing about annuities. 6% guaranteed returns may be fine now when inflation is low along with interest rates but if we see double digit inflation again like the 1970s then you coud be in big trouble as your purchasing power will not keep up. Just something to consider as you look into them to see what protections they have against this scenario. Sorry I can’t help more.

By: Scott McConnell

Scott McConnell — Mon, 01 Mar 2010 18:17:57 +0000

Hi, What do you think of Annuities, especially the new ones that can be linked to stock funds, as a place to invest money rather than with Treasuries and Bonds, as per your permanent portfolio ideas. Some Annuities now have 6 % guaranteed returns. In these times of government/Treasury insanity govt. bonds/mony market funds seem very risky.

Thanks,
Scott

By: Why I own stocks... | Crawling Road

Why I own stocks... | Crawling Road — Thu, 11 Feb 2010 09:45:10 +0000

[...] time. But I also recognize that it’s close enough that debating the point is academic because rebalancing between assets eliminates these [...]

By: Clive

Clive — Fri, 09 Oct 2009 21:50:54 +0000

Jan, what settings are you using for AIM?

Using 33% allocation to each of stocks, bonds and gold, 80% stock, 20% cash initial settings in each of the three AIM’s (i.e. so near 25% initial allocations to each of stocks, bonds, gold and cash) and with 10% Buy Safe, 0% sell Safe, 10% Min Trade Size – so far between 2005 and 2008 AIM is around 1% p.a. ahead of yearly rebalanced PP.

http://ih.fotothing.com/102219.gif

By: craigr

craigr — Fri, 18 Sep 2009 18:11:42 +0000

Jan,

I will try to bring everything up to 25%, but give priority to the lowest priced assets first with the money. Prioritize buying the assets that are on sale.

By: Jan

Jan — Fri, 18 Sep 2009 18:06:51 +0000

Hi craigr

I liked / agreed with your reply to Ed. Didn’t want to write that much myself. With what I do with AIM I don’t try to catch the exact tops or bottom either.

One more question:

When one security wants to be rebalanced I assume you bring EVERYTHING to 25% at that time and not just dump it all in the lowest price security or vise versa leaving the other two the same.

By: craigr

craigr — Fri, 18 Sep 2009 17:56:16 +0000

Jan,

Harry Browne advocated using rebalancing bands. 15% to buy and 35% or higher to sell. He also said you could use 20% to buy and 30% to sell just as long as you are aware of the higher transaction costs. He also advocated not looking at the portfolio except for every year or so or if you heard about something big happening in the markets.