Patrick.net

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San Francisco, CA
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In United States
Registered Oct 26, 2009

blackhammer's most recent comments:

• On 6 Mar 2012 in How do I create a $400k Cashier's check?, blackhammer said:

  Having a non-interest bearing checking account has no FDIC limits until the end of the year. So you can indeed have more than 250,000 in a single checking account with FDIC coverage.

  http://www.fdic.gov/deposit/deposits/insured/temporary.html

• On 5 Jan 2012 in Investing outlook for the next 1-2 years, blackhammer said:

  Any answer is likely going to have a personal bias associated with the allocation. The Harry Browne Permanent Portfolio allocation reduces guessing and forecasting, but still is my own personal preference and should not be construed as investment advice:

  25% Broad Stock Index [VTI] ~ Prosperous Times
  25% 20 to 30 year Treasuries [TLT] ~ Deflation
  25% Gold (physical ideal) [GLD] ~ Inflation/Currency risk
  25% Cash [SHV] [SHY] ~ Recession

  Rebalance when any allocations hits 15/35% of the total portfolio. I use 20/30 to be more conservative.

  Look at this allocation as a package, since having a collection of uncorrelated assets significantly helps reduce the risk and volatility of the whole portfolio.

  Lower risk also translates to lower expected returns so do not expect high-flying performance from this portfolio. However, the term expected returns is a misleading term often focusing on the potential gain, rather than the potential losses.

  Think of this as a tortoise vs hare. The hare kept running back and forth, while the tortoise plodded slowly forward. Not a perfect analogy since the Permanent Portfolio can suffer losses (longest period ~18 months).

• On 10 Dec 2011 in recommendations for financial advisers who don't charge 1-1.5 % (bay area), blackhammer said:

  http://www.napfa.org/

  I don't use a financial advisor.