19 years ago today, in the aftermath of the 9/11 attacks, Harry Browne, the Libertarian Party’s 1996 and 2000 presidential nominee, posted the following to WorldNetDaily as his reaction to the events. Prior to 9/11, Browne warned interventionist American foreign policy would have catastrophic consequences for the nation. In his essay, he explains why the attacks should not surprise,…
Harry Browne: When Will We Learn? — Independent Political Report
So it has now been exactly two years since I made my version of the Permanent Portfolio public and it has outpaced the DOW and the S&P. The net return has been 79.4% while the DOW has had a return of 31.9% and the S&P 23.2% during the same time period. And, for the naysayers regarding my small investment in Bitcoin for the portfolio then one would have to say the same about NVR and PYPL, etc. But if one was to remove Bitcoin from the mix completely, the investment would have been within a point of the DOW’s return without any of the risks in holding just 30 equity stocks or a single ETF for the DOW. This portfolio is eclectic, to say the least, but is designed to weather some heavy financial storms as well. It also has a minimum 10-year horizon, so at two years, it is still in its infancy.
See the full page here: https://karldickey.wordpress.com/karl-dickey-investment-portfolio/
In response to recent media reports about the increase in Latin American children seeking entry into the United States, Libertarian Party Chair Nicholas Sarwark released this statement:
Should the U.S. government forbid foreign children from entering the United States? The Libertarian Party says no.
It would be unjust and inhumane for the U.S. government to prohibit these children from entering the United States.
READ THE REST OF THE STORY HERE
This is a combined asset allocation model culminated from Harry Browne, Tony Robbins, Jim Rogers and my own experience. I have excluded most specifics with relation to my personal situation and generalized the plan for the general public. This, in my opinion, is a balanced and safe approach to managing one’s net worth. I am NOT a financial adviser and if you consider anything from below, you should consult with a tax adviser, investment adviser and/or your attorney to see if it is right for you.
UPDATE: I have created a permanent investment portfolio at this link.
Definitions:
There are essentially FOUR “Buckets” where you will have your net worth. Your Security Bucket, Growth Bucket, Dream Bucket, and your Maintenance Budget. More on the buckets in a bit.
MUSTS:
Example of what to do with your extra income and money received unexpectedly: $1,000 received – put $500 in Security Bucket, $250 in the growth bucket, $185 in the maintenance budget, $65 in the dream bucket. Spend less than you earn and you will have money left over for this plan. Skip the $12 martini and the $6 latte and put that money to work for you the rest of your life.
Reinvest all dividends, profits & non-earned income from the following buckets & distribute the income equally to each bucket.
50% of Assets go into your Security Bucket
This is the place where you put money into investments that are secure by their nature. They won’t give you huge compounded return, but if you do it long enough, even if the initial return is small, in the long run that compounded return grows and is kept secure. Your first investments MUST be put into your security bucket. These assets are either owned Joint Tenants in the Entirety if married, or in another secure, asset protection vehicle such as a trust.
12% of Security Bucket – CASH (equivalent to 24 month’s expenses, though some may only want to have 6 months reserve)
20% of Security Bucket – Your personal home
15% of Security Bucket – Life Insurance (and make certain you have HSA health insurance covered as well)
48% of Security Budget into your IRA / SEP / Tax Free Retirement Vehicle(s)
5% Fixed Income Investments: Corporate Bonds, other taxable but high yielding investments
90% Rest in Misc. Investments: Real Estate (REIT or direct), BRK.a or BRK.b
25% of Assets go into your Growth Bucket
These assets should be held in an LLC or other asset protected (privacy) vehicle
6.5% of Assets go into your Dream Bucket
These assets can be anything from cars, boats, planes, etc. This is literally your dream bucket when you put money aside to buy or you already own the toys in your life.
18.5% of Assets go into your Maintenance Budget/Bucket
This is your maintenance bucket which is to pay ALL of your expenses during the year for when you do not work or for when you retire. If you are retired, then this is the bucket which must generate enough income for you to live. This needs to generate income (preferably tax-free) to pay up to at least $X per year in expenses such as food, property taxes, travel, etc, etc.
This is a combined asset allocation model culminated from Harry Browne, Tony Robbins, Jim Rogers and my own experience. I have excluded most specifics with relation to my personal situation and generalized the plan for the general public. This, in my opinion, is a balanced and safe approach to managing one’s net worth. I am NOT a financial adviser and if you consider anything from below, you should consult with a tax adviser, investment adviser and/or your attorney to see if it is right for you.
Definitions:
MUSTS:
Example of what to do with your extra income and money received unexpectedly: $1,000 received – put $500 in Security Bucket, $250 in the growth bucket, $185 in the maintenance budget, $65 in the dream bucket. Spend less than you earn and you will have money left over for this plan. Skip the $12 martini and the $6 latte and put that money to work for you the rest of your life.
Reinvest all dividends, profits & non-earned income from the following buckets & distribute the income equally to each bucket.
50% of Assets go into your Security Bucket
This is the place where you put money into investments that are secure by their nature. They won’t give you huge compounded return, but if you do it long enough, even if the initial return is small, in the long run that compounded return grows and is kept secure. Your first investments MUST be put into your security bucket. These assets are either owned Joint Tenants in the Entirety if married, or in another secure, asset protection vehicle such as a trust.
12% of Security Bucket – CASH (equivalent to 24 month’s expenses, though some may only want to have 6 months reserve)
20% of Security Bucket – Your personal home
5% of Security Bucket – Life Insurance (and make certain you have HSA health insurance covered as well)
63% of Security Budget into your IRA / SEP / Tax Free Retirement Vehicle(s)
25% of Assets go into your Growth Bucket
These assets should be held in an LLC or other protected vehicle
6.5% of Assets go into your Dream Bucket
These assets can be anything from cars, boats, planes, etc.
18.5% of Assets go into your Maintenance Budget/Bucket
This is your maintenance bucket which is to pay ALL of your expenses during the year for when you do not work or for when you retire. This needs to generate income (preferably tax-free) to pay up to at least $X per year in expenses such as food, property taxes, travel, etc, etc.
he Benefits
If we eliminate all the powers and programs of the federal government that aren’t “delegated to the United States by the Constitution,” you will benefit in three ways:
The federal government once again will be held in check, limited to specific functions.
The federal government no longer will have the power to interfere in your life.
The federal government will be so small that there will be no need for a federal income tax.
For over a hundred years there was no income tax, because the federal government was contained fairly well by the Constitution. National defense and the few other authorized activities were financed by minor taxes that were only a small inconvenience to the people.
Today the federal government could get by with just the import tariffs and excise taxes that are already being collected. They are enough to finance national defense, the judiciary, and the few remaining Constitutionally authorized functions.
If we reduce government to its Constitutional limits, there will be no need for a personal income tax, estate tax, gift tax, capital gains tax, Social Security (FICA) tax, or corporate income tax. And there will be no need to replace these taxes with a flat tax or a sales tax — or to increase the other taxes the federal government collects now.
We can repeal the income tax and replace it with nothing.
Actually, that statement isn’t precise. We can repeal the income tax and replace it with freedom — your freedom to keep every dollar you earn.
Liam Works, 1998. First edition. Hardcover. As New/as new. SIGNED by the author. Inscription reads: To Karl Dickey / with best wishes / Harry Browne / 2/21/98. Karl Dickey was the former chair of the Libertarian Party of Florida and the current chair of the Libertarian Party of Palm Beach County. He is also a current candidate for Palm Beach County Commission. 1997 LiamWorks edition. First printing with full number line starting at 1. From a private collection. New, never read.
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Karl Dickey 