How to build and manage your own Permanent Portfolio

This video demonstrates how to build and manage your own Permanent Portfolio

Subscribe:
youtube.com/channel/UCrCg2fScYbBrzoxoE1dh2Og?su…

Introduction to the Permanent Portfolio:
youtube.com/watch?v=65EguFkCbDs&t=8s

ETFs that mimic the asset classes in the Permanent Portfolio
• USD:
○ SPY: S&P 500 Index ETF (MER: 0.09%)
○ TLT: iShares 20+ Year Treasury Bond ETF (MER: 0.15%)
○ GLD: SPDR Gold Shares (MER: 0.40%)
○ SHY: iShares Trust 1-3 year Treasury Bond ETF (MER: 0.15%)
• CAD:
○ VSP: Vanguard S&P 500 Index ETF (CAD-hedged) (MER: 0.08%)
○ VLB: Vanguard Canadian Long Term Bond Index ETF (MER: 0.17%)
○ MNT: Royal Canadian Mint Exchange Traded Receipts (MER: 0.35%)
○ VSG: Vanguard Short-Term Government Bond Index ETF (MER: 0.18%)
• Note: Stick with one currency - makes rebalancing simpler

Initial Setup:
• Make initial allocation at 25% in each of your funds
• Make a rebalancing rule:
○ i.e. 10% around the initial allocation
○ 10% of 25% is 2.5% so only rebalance if any asset class goes outside of 22.5% - 27.5%
• Set an interval for rebalancing: i.e. monthly or quarterly

Managing your portfolio:
• Any time a rebalance is required, simply take the total value of your portfolio and allocate 25% to each asset class.
• This should mean no more than 4 transactions to rebalance at no more than $40 in total.
• Expect to have to do this once per year.