100 Level

Ten Rules to Follow in Preparation for Retirement

Over the next few days I will lay out ten fundamental ideas or rules that will serve readers well as they prepare for retirement.  I know many of you are already well into retirement and have gone through this process while others are just beginning their investment journey.  For the veterans, you may pick up a few ideas and have others reinforced.  If you have words of wisdom for other readers, … [Read More...]

Six Investing Basics

1.  Save 2.  Index 3.  Diversify 4.  Cut Costs 5.  Rebalance 6.  Monitor Save:  Follow "The Golden Rule of Investing."  There is no substitute for saving and living below your means. Save early in life and do it frequently. Index:  Use index funds or index ETFs.  Avoid picking individual stocks unless you are an expert.  Even most experts cannot do it successfully.  Remember, … [Read More...]

300 Level

Madison Portfolio Revisited: 18 May 2012

Photograph:  Alaska-Canada Highway Milepost located in Fairbanks, Alaska One of the five portfolios following the ITA Risk Reduction model is the Madison.  Below is the current Dashboard, a worksheet extracted from the TLH Spreadsheet.  As Platinum members can see, the portfolio looks a little "bloody" - to be expected in this type of mini bear market. Platinum … [Read More...]

Year End Portfolio Hints

This year, the last business day arrives on December 31st and that gives us a chance to balance our portfolios to the nearest penny. At least TDAmeritrade clients have a high probability of receive access to their statements before the market opens the following week. Go through your portfolio Monday and see if you have any tax losses you might want to capture in 2010. If the loss is small, I … [Read More...]

200 Level

Retirement Planning: Begin Today

"Acting in loco parentis, the government could create powerful incentives to adopt passively managed, appropriately allocated investment programs."- David Swensen Any incentives to move citizens toward some sort of saving plan would benefit society.  More capital is available to develop businesses and retirees would be less dependent of Social Security for sustaining … [Read More...]

Bohr Portfolio Review: 15 September 2011

Since the last update, shares of RWX, VOE, VEU, VTV, DVY, VWO, and VUG were added to the Bohr portfolio.  The number of shares were small as most of the asset classes are in balance.  The two asset classes that need attention are large-cap value and international REITs.  I over-shot large-cap value with purchases in VTV and DVY.  Mid-Cap Blend will take care of itself.  As … [Read More...]

400 Level

Sample Portfolio For Fidelity Clients

The following portfolio represents a sample of commission free ETFs available through Fidelity.  The efficient frontier shows an asset allocation plan that is so close to an optimized portfolio that the diamond and red dots are no different on the graph. Efficient Frontier:  The indicator for the optimum portfolio lies behind the diamond dot.  The Return/Risk ratio is just a bit over 0.5, quite … [Read More...]

Current Condition of the ITA Risk Reduction Model

In contrast to a passive or index approach to investing, what is the state of the critical ETFs used in the portfolios where we are employing the ITA Risk Reduction (ITARR) model?  Tactical Asset Allocation is applied to ETFs in the Maxwell, Euclid, Madison, Kenilworth, and Gauss portfolios so as to avoid "Black Swan" events as we experienced in 2002 and again in 2008.  While … [Read More...]