100 Level

Ten Biggest Investor Mistakes – #1

ITA Wealth Management Mistake #1: Failure to save adequately for retirement is my number one mistake. Investors do not save enough early enough. One will not have sufficient retirement funds if the saving rate is too low and the key is to begin saving as early in life as possible. All the other mistakes are moot if one does not have capital to invest.  One of the services to Platinum … [Read More...]

Second Analysis of Actively Managed Mutual Funds Plus ETFs

The following analysis of the actively mutual funds is supplemented by a few ETFs used in nearly all the ITA Model Portfolios.  The reason for adding the ETFs is to see how the actively managed mutual funds stack up against the ETFs in the ranking worksheet.  That is the second screenshot shown below.  In this analysis we begin with the Efficient Frontier graph.  The shares in the various funds … [Read More...]

300 Level

Benchmarking a Portfolio: Essential to Portfolio Management

Waterford, Virginia ITA Wealth Management readers know I am passionate about portfolio benchmarking and portfolio risk analysis.  To my knowledge, there is no better software program for the small investor than the TLH Spreadsheet, provided to all Platinum members.  We use two primary benchmarks in this spreadsheet, although four are available.  One is Vanguard's Total Stock … [Read More...]

Dividend Aristocrats Ten Months Later

Nearly ten months ago a list of dividend oriented stocks were discussed on Seeking Alpha.  From the list of 42 Dividend Aristocrats, I honed in on those listed as a Buy.  Fifteen stocks made that elite list.  What kind of portfolio would an investor end up with when placed under the Quantext Portfolio Planner (QPP) microscope?  There are a few surprises as readers will see … [Read More...]

200 Level

Retirement Payout Spreadsheet

A few days ago I mentioned the possibility of a retirement payout spreadsheet coming to ITA.  The spreadsheet is now available and the link, provided below, is available to Platinum members.  The spreadsheet is authored by a friend and I customized it for individual investors.  The concept behind this spreadsheet is to see the change in the payout if one lowers it by some … [Read More...]

Second Retirement Rule: Know Your Requirements

While there is no question about Rule #1 of following The Golden Rule of Investing, all rules thereafter could come in any order.  The second one I've selected is to know your retirement requirements.  How much will you need monthly to live comfortably?  It is not unusual to hear a figure of 80% of your last salary.  I would set that as a minimum figure.  If your last annual salary was $70,000 per … [Read More...]

400 Level

Point and Figure Checkup

Run each of your stocks, funds, and/or ETFs through a Point and Figure (PnF) checkup using this link.  Do you observe O's or X's in the right-hand column?  If the slope of the line is positive, relax.  However, if you find O's in the right-hand column and the slope of the line is negative, examine closely what is going on.  Is the price of the security above or … [Read More...]

Sharpe Ratio: Why I prefer the Sortino and Retirement Ratios

The Sharpe Ratio is a measure of return-risk for a portfolio or individual investment.  Like many concepts that lend themselves to mathematics, it is easier to understand what the Sharpe Ratio means if written in the form of an equation. S = (R - T)/Sigma     (My editor does not have the correct symbol for Sigma.) Developed by Stanford Professor, William F. Sharpe, … [Read More...]