100 Level

Retirement Mistake #5: Underestimating Life Expectancy

Not only are we living longer, but we are living healthier lives.  When planning for retirement, what age should one project as the end-of-life year?  When running out retirement projections using the Monte Carlo calculations within the Quantext Portfolio Planner software, I use 100 as the end-of-life year when testing the probability of running out of money.  There are many assumptions that go … [Read More...]

Asset Allocation Example

In the table below, viewers see the asset classes discussed in a prior blog entry.  We are looking at fifteen asset classes, including Cash. In the second table the sample asset allocation is broken down into percentages and we cut out the Core holding, moving the number of asset classes to twelve. [Table=6] … [Read More...]

300 Level

Kenilworth Review: 7 October 2011

Kenilworth Update No sales or purchases occurred within the Kenilworth Portfolio this month.  I did make some slight Strategic Asset Allocation shifts.  I increased cash and bonds by one percentage point and stripped off two percentage points from emerging markets.  Nothing major.  Below is the new asset allocation plan. … [Read More...]

Mama, How Am I Doing?

I feel compelled to bring this blog entry forward from time to time lest new readers missed it when published nearly a year ago. As little children we were always checking with one or more parents to see how we were progressing.  Whether it was swimming, roller skating, or learning how to ride a bike, it was not unusual to check in with an adult to gain a performance frame of … [Read More...]

200 Level

Are You Ready for Retirement? Most Americans Are Not Prepared

The Encore section of the January 14 Wall Street Journal points out that many people are behind on their preparations for retirement. 67% of workers say they are behind schedule in planning and saving for retirement.  These folks violated The Golden Rule of Investing. One 58% of works say they or their spouse are currently saving for later life.  Perhaps the middle class has fallen so far … [Read More...]

ITA Portfolio Performance Data Sheet: 16 November 2012

While all portfolios declined in value over the past two weeks, the good news is that every portfolio, without exception, gained ground on both the ITA Index and VTSMX benchmarks.  Yes, you read correctly.  Every portfolio picked up basis points on both critical benchmarks. While none of these accounts are particularly set up as defensive portfolios, all reacted this way as none declined as … [Read More...]

400 Level

Efficient Frontier: A Brief Explanation

In preparation for a fresh design of this blog I asked for suggestions how to improve the "look and feel" of ITA Wealth Management.  Several suggestions focused on the need for further explanation of some of the technical aspects of investing.  Before going too technical, keep in mind that as investors, we continually ask the question - "What portfolio will produce the most return for the least … [Read More...]

Suggested Portfolio

A Platinum member sent in the following portfolio for a Quantext Portfolio Planner (QPP) analysis and evaluation.  In the following screen shots, readers will see the tickers, percentages allocated to each, the QPP analysis, and a three-year look at the "Delta Factor" projections.  For the following QPP analysis, I used three years of historical data and assumed the S&P 500 … [Read More...]