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Harry Browne’s Rules of Financial Safety (1999)

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Re: Harry Browne’s Rules of Financial Safety (1999)

#111

Post by jonhohle »

jboy55 wrote: post #69
spacedcowboy wrote: post #24

Alternatively: buy AAPL :)

I remember in around 1998 I just started my career and one of my duties of my job was to go around to our alpha testers of a photography product we built and make sure things were going well. These customers were often pretty angry at my company due to them not being told it was an alpha version, but most often they were happy to see me try to help them out. Anyhow, at one of those customers, the designers, photoshop…

Hopefully he doesn’t follow Jobs’ medical strategy.

Re: Harry Browne’s Rules of Financial Safety (1999)

#112

Post by PopAlongKid »

prepend wrote: post #76

What’s the minimum wealth level where these are applicable? > Rule 13: Keep some assets outside the country in which you live. This is very impractical unless you have even money where 5% of your wealth international makes up for the cost to maintain. It could easily cost$5-10k in travel expenses to travel somewhere and establish accounts, plus the costs to account for and audit and maintain.

In the U.S. you have FBAR and FATCA requirements to report information on many types of assets held in foreign countries.

Re: Harry Browne’s Rules of Financial Safety (1999)

#113

Post by tmn »

bluecheese452 wrote: post #105
darkclouds wrote: post #38

Earlier quoted context omitted.

You obviously havent had your bank account frozen for no reason. I have! Trying going without cash for 6 weeks, not knowing if transactions have gone through, direct debits have been paid etc etc. Going around in legal loopholes where the bank ombundsman wont talk to you until you have exhausted the banks complaints dept, but the banks complaints dept wont talk to you, so you get no where. Its fucking legal intimidat…

The west did not stoke a war with Russia. What are you on about?

You might disagree, but this a widely held narrative. If you aren’t familiar with it you’re not getting news from diverse sources

Re: Harry Browne’s Rules of Financial Safety (1999)

#114

Post by DennisP »

kaycebasques wrote: post #22

Rule #1 (your career creates your wealth) is a gem. Rule #8 (make your own decisions) lacks self-awareness, especially after you read Rule #11 (bulletproof portfolio). I have been on a quest for a truly bulletproof portfolio for years. It's not easy. TANSTAAFL. Rule #11 also contradicts Rules #6 (no trading system works forever) and #9 (only do things you understand). That criticism aside, the author did a service to…

Trading systems and asset allocations are not the same thing.

Browne wrote a book explaining his portfolio in hopes that people would understand it. If you understand it and decide to use it, you're making your own decision.

Re: Harry Browne’s Rules of Financial Safety (1999)

#116

Post by throw0101a »

With regards to Rule 11, especially:

> GOLD not only does well during times of intense inflation, it does very well.

No, it does not:

* https://www.nber.org/papers/w18706

* https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3667789

From Roy Jastram's The Golden Constant: The English and American Experience 1560 to 1976:

> Andre Sharon, head of the international research department at Drexel Burnham, Inc., notes, “the value of gold essentially derives from its capacity to preserve real capital and purchasing power.”† I select this particular quotation because of the prestige of the organization and the position of the spokesman, but statements in this vein can be found in great numbers. They can be traced back for generations and in many countries. How can this proposition so contrary to statistical fact become so widely believed and quoted? Possibly because gold has preserved capital in cataclysmic cases it is easy to infer that it can be trusted to do the same in less severe circumstances. To extrapolate from gold’s protection in singular catastrophes to its use as a strategy against cyclical infation is an example of faulty inductive reasoning.

* PDF: http://csinvesting.org/wp-content/uploads/2016/02/RoyJastram...

* https://www.pwlcapital.com/will-gold-save-the-day/

Re: Harry Browne’s Rules of Financial Safety (1999)

#117

Post by DennisP »

roenxi wrote: post #62
osigurdson wrote: post #53

Earlier quoted context omitted.

If you look at the chart for the GLD it doesn’t resemble and inflation proof investment imo. Maybe in the extremely long term it is but on a 1 decade time scale for example it certainly is not.

I cheerfully point out that cash also doesn't resemble an inflation proof investment. The difference is gold's value ambles around a level, and cash trends down.

Physical cash trends down but t-bills have kept up with inflation over the past century.

Re: Harry Browne’s Rules of Financial Safety (1999)

#118

Post by nottorp »

theshrike79 wrote: post #95
prepend wrote: post #76

What’s the minimum wealth level where these are applicable? > Rule 13: Keep some assets outside the country in which you live. This is very impractical unless you have even money where 5% of your wealth international makes up for the cost to maintain. It could easily cost$5-10k in travel expenses to travel somewhere and establish accounts, plus the costs to account for and audit and maintain.

I have bank account in a German bank[0] and I opened it during a coffee break at the office. I don’t live in Germany and have never visited there. [0] https://en.wikipedia.org/wiki/N26

"In November 2021, N26 announced that it would be pulling out of the United States in January 2022, leading to the closure of approximately 500,000 accounts. American customers were no longer be able to use its app after January 11, 2022."

This is the bank you linked to?

Re: Harry Browne’s Rules of Financial Safety (1999)

#119

Post by DennisP »

throwaway290 wrote: post #110
ghaff wrote: post #92

Earlier quoted context omitted.

Like everyone else, a liquid and very low risk (modulo inflation) financial instrument. (The definition is often a bit broader in financial statements.) I'd posit that, in this day and age, $100K (or whatever) in bank notes is going to do you very little good if you lose access to all your accounts.

> Like everyone else, a liquid and very low risk (modulo inflation) financial instrument. You clearly misread my question. I'll rephrase for legibility then: What is the word for cash (as in "physical money not in a bank") if you use "cash" to mean the opposite ("money in a bank")? Is it now a concept so rarely used that term is unnecessary? Also wow, didn't know you can't buy a car or a house with cash in US anymore…

Words can have more than one meaning, depending on context. For investors talking about asset allocation, "cash" means t-bills, money market, or money in the bank.

Re: Harry Browne’s Rules of Financial Safety (1999)

#120

Post by thenerdhead »

soared wrote: post #33
thenerdhead wrote: post #11

Earlier quoted context omitted.

Rule #1 literally talks about why you don't. > Can you make big profits by relying on an expert who does have the proper qualifications? How do you find a true expert? That task is no easier than picking the right investments. If you don’t understand investing as well as the pros, you won’t know how to check those who seek to advise you. And you can’t rely on an advisor’s track record, even when it’s presented honest…

This is true historically where you needed to pick an individual advisor who managed your portfolio based on their experience/etc. That’s not really how the major companies like fidelity run it anymore - an advisor gets their certification and then fully plays by the playbook and isn’t allowed to even have their own track record. So you’re not getting some guys advise, you’re getting a company’s extremely researched…

The point of much of Harry Browne’s work is to be self-reliant and not trust the government nor big companies with your life decisions such as investments. Stop fooling yourself that these big companies are looking into your best interests. They aren’t. They are looking for ways to make activity on your investments and collect fees.
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