Message:

<p>[QUOTE=&quot;Rono, post: 1360273, member: 6492&quot;]Hi brinksta,</p><p><br /></p><p>Congratulations on thinking about your future.&nbsp; Also, that you realize the value of having some bullion.&nbsp;&nbsp; I think that everyone should have 5% of their wealth in bullion as a security blanket, if you will.&nbsp; &nbsp; If you want to have more, that&#039;s fine, but if you&#039;re not diversified, and much of your wealth is in gold and precious metals, you can get killed by the market in the short run.&nbsp;&nbsp; Gold and silver were down in the gutter for 20 years and folks that bought in the late &#039;70s didn&#039;t get back to even until recently.&nbsp;&nbsp; </p><p><br /></p><p>The reason we diversify our porfolios and wealth is to cushion us against the vagaries of the market.&nbsp; Whenever some sector, or asset class is up, others are down.&nbsp; There is a whole field of investing devoted to developing certain allocations designed to never lose money.&nbsp; There is a mutual fund called the Permanent Portfolio PRPFX.&nbsp; The fund is based upon the concept of Harry Browne that the right mix of asset classes would result in a fail safe investment strategy.&nbsp; He was for 25% each stocks, bonds, cash and gold.&nbsp; </p><p>&nbsp; </p><p><a href="http://en.wikipedia.org/wiki/Fail-Safe_Investing" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://en.wikipedia.org/wiki/Fail-Safe_Investing" rel="nofollow">http://en.wikipedia.org/wiki/Fail-Safe_Investing</a></p><p><br /></p><p>I like better to recall a quote from the elder Baron Rothschild that to be safe, you should keep 1/3 of your wealth in securities, 1/3 in real estate and 1/3 in rare art.&nbsp; Define rare art as you will.</p><p><br /></p><p>Lastly, I think everyone should start planning for retirement as young as possible - like you are doing.&nbsp; However, your youth gives you an enormous advantage over an older person because you have time to invest for a long enough period of time to recover from market reversals and to better advantage things like compound interest.</p><p><br /></p><p>When thinking about your retirement, think of a foot stool.&nbsp; The more legs under the stool, the sturdier it is.&nbsp; You don&#039;t want to have just one leg in the form of bullion.&nbsp; Granted, it&#039;s a good leg, you just need more.&nbsp; Legs can be social security, pension, IRA, 401K, savings, home equity, bullion, second incomes, income property, etc.&nbsp; Well, county your legs and see if you can either add some more OR make some weaker ones stronger.</p><p><br /></p><p>And good luck,</p><p><br /></p><p>peace,</p><p><br /></p><p>rono[/QUOTE]</p><p><br /></p>

Your name or email address:

Do you already have an account?

• No, create an account now.
• Yes, my password is:
• Forgot your password?

Stay logged in