Making Money Minute - September 25, 2025
Update: 2025-09-26
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Making Money Minute with Ron Hiebert - The Permanent Portfolio
If you want to invest, but worry a bear market could chew a big hole in your nest egg, there are options that provide reasonable returns with limited volatility. One of them was developed by a financial guy named Harry Browne called the Permanent Portfolio. You divide your nest egg into 4 equal piles, and put 25% into a domestic long term bond ETF, 25% in a domestic short term bond etf, 25% in a gold etf, and 25% in a Canadian stock index ETF. After that, the only work required, is to rebalance once a year. Over 3 decades, this portfolio has averaged greater than 6% a year. Its worst annual drop during the period, was only 10%.
If you want to invest, but worry a bear market could chew a big hole in your nest egg, there are options that provide reasonable returns with limited volatility. One of them was developed by a financial guy named Harry Browne called the Permanent Portfolio. You divide your nest egg into 4 equal piles, and put 25% into a domestic long term bond ETF, 25% in a domestic short term bond etf, 25% in a gold etf, and 25% in a Canadian stock index ETF. After that, the only work required, is to rebalance once a year. Over 3 decades, this portfolio has averaged greater than 6% a year. Its worst annual drop during the period, was only 10%.
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