Basics of a permanent portfolio fund

The permanent portfolio fund is a type of investment that is made to offer a solid performance whatever of what is going on in the market. Here are the basics of permanent portfolio funds and what they have to offer you as an investor.

Permanent Portfolio Fund

The idea for permanent portfolio funds that you have a mutual fund that could withstand any market conditions. This was accomplished by investing in many different types of securities. Putting emphasis on investing in things that you could find outside of the stock market.

A permanent portfolio school of thought was to invest in an equal proportion of stocks, bonds, cash, and gold. Therefore, the original investment mix was 25% of each type of investment. In today’s conditions the current composition of the fund is 25% precious metals, 10% Swiss franc bonds, 15% real estate and natural resource stocks, 15% aggressive growth stocks, and 35% in government securities such as T-bills. In this way investors funds regardless of what happened in the economy feel more secure. Although with this fund you have to expect a slow and steady growth curve. This type of fund has been proven to gain value steadily over time. We encourage you to try it, if you want to create a fund that is somewhat secure and has steady gains as time goes on. At best, you will have an asset that will have paid out some income at the same time have grown in value with a relatively low-risk investment approach that lets you keep your money over the long-term. It sounds very viable especially in these volatile times when the stock market tends to fluctuate and the stability and strength economy is somewhat unsure, the permanent portfolio may work for you.

How to invest during a financial crisis – The Jim Rogers way

An interesting interview with Jim Rogers is up at Businessweek.com

So you reject the advice about diversified portfolios?

Diversification is something that stock brokers came up with to protect themselves, so they wouldn’t get sued [for making bad investment choices for clients]. Henry Ford never diversified, Bill Gates didn’t diversify. The way to get rich is to put your eggs in one basket, but watch that basket very carefully. And make sure you have the right basket.
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Obama’s mutual fund

The vast majority of his mutual fund holdings are in the Vanguard FTSE Social Index fund (VFTSX).

According to the Vanguard site, the fund consists of mostly U.S. large and mid-sized companies that meet certain social and environmental criteria. The index tracks the performance of the FTSE4Good US Select.
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What exactly is a Revocable Living Trust?

A Revocable Living Trust, also simply called a Living Trust, is a legal document that is created by an individual, called a Trustmaker, to hold and own the Trustmaker’s assets, which are in turn invested and spent for the benefit of the Trustmaker.

This covers three phases of a Trustmaker’s life:
1. While the Trustmaker is alive and and in good health
2. If the Trustmaker becomes mentally incapacitated thus making him unable to decide for himself/herself.
3. After the Trustmaker dies.

Phase One of a Revocable Living Trust: The Trustmaker is Alive and Well

If the Trustmaker is good health and sound mind, the trust agreement will have specific rules allowing the Trustmaker to manage, invest, and spend the trust assets as he see fit. Thus, the Trustmaker will go about business as usual with regard to assets. The Trustmaker will also be able to use his or her own Social Security Number as the taxpayer identification number for the trust and file income taxes on IRS form 1040 instead of form 1041.

The next part of the article will cover phase two of a Revocable Living Trust.

How to profit from your passion

1. Redeploying your passion in a hungrier market. Do what you love in an area where there’s high demand.

2. Refocusing and mining the most lucrative micro-markets. Sometimes the solution is to narrow your market, to focus on doing something valuable for a select group of people.

3. Exploiting gaps in the information needed to excel at an activity. Fields argues that one way to succeed at doing what you love is to provide information that nobody else offers, or to offer it in a way that others don’t.

4. Exploiting gaps in education. Beyond just providing information, some people can profit by directly teaching others.

5. Exploiting gaps in gear or merchandise. Using this path, you turn your passion into a product. You “build a better mousetrap”, so to speak.

6. Exploiting gaps in community. People value networks, and if you’re the first or best to create one devoted to your subject, you can become the leader in the field. Fields mentions Ladies Who Launch as an example of taking a passion for community-building and it into a career.

7. Exploiting gaps in the way a pursuit is provided. The final path is to make it easier for people to do what you love (and what they love).

Source: Career Renegade: How to Make a Great Living Doing What You Love