04-22-2021, 07:35 PM
(04-22-2021, 07:23 PM)ken-do-nim Wrote:(04-22-2021, 07:07 PM)jalanlong Wrote: I current invest in a variation of the Permanent Portfolio which allocates 25% to cash, 25% to long treasuries, 25% to stocks and 25% to gold. I have tweaked it a bit to give myself more stocks and less gold/LTTs.
However, as well as that portfolio has backtested over the last 40 years, it did so using the tailwinds of lowering interest rates. Now its sitting on cash paying 0% and Long Term Treasuries at historical lows relying on stocks and gold to do the heavy lifting.
I am closer than ever to going back to my grandparent's old time investing ways. No Bitcoin. No NFTs. No Modern Portfolio Theory. Back to basics. 10% of my funds in cash and the rest in "safe" dividend paying stocks like JNJ or UNP etc. I will ignore the daily fluctuations, live off of the (hopefully) increasing dividends and leave the principal for my heirs. That is my plan. But I haven't pulled the trigger on it yet. I am sure the moment that I do long bonds will take off, although I don't know what the catalyst for that would be right now.
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I love the idea of living off the dividends and leaving the principal to your heirs. Personally, if I were in drawdown mode from my portfolio, I would switch over more to AT&T and MO where the yield is substantially higher than JNJ and UNP. Even Verizon and and Consolidated Edison have a much higher yield than JNJ and UNP. I guess it all depends upon what you consider safe.
I am still in the accumulation phase. Im 51 and made bad financial decisions most of my life. However, now I am debt free and able to sock away a large % of my income. So I am trying to find stocks which balance growth and income.