100 Level

Ten Biggest Investor Mistakes – #10

  Wealth Management – Mistake #10: Investors do not monitor their portfolio adequately.   Rare is the investor who can place their hands on the Internal Rate of Return (IRR) of their portfolio. An even smaller percentage of investors know how well their portfolio is performing with respect to an appropriate benchmark. The third measure, risk of portfolio, reduces the … [Read More...]

Portfolio Performance Data

Portfolios tracked using the Captool software have been updated as of 8/31/2010. All of these portfolios lost a little ground over the month of August to the Vanguard Total Market Index Fund, VTSMX, a primary benchmark. Portfolios tracked using the TLH spreadsheet will be available this Saturday (9/25/2010) and if the market holds, we expect most of the portfolios will show a positive separation … [Read More...]

300 Level

Benchmarking The Portfolio

Establishing an appropriate benchmark for a portfolio is essential if one is serious about investing.  Avoiding portfolio benchmarking is an act of self-deception, but all too common with the average investor.  Exactly what is the purpose of a benchmark and what are the requirements for a fair and reasonable benchmark.  Here is one definition of benchmarking. In the investing … [Read More...]

You Can’t Manage What You Don’t Measure

While I am not positive of the source, the old business adage, "You can't manage what you don't measure," continues to hold.  Portfolio construction, measurement and management are what set ITA Wealth Management apart from other blogs.  While directing investors toward index vehicles for the core of their portfolio is an essential ingredient for successful investing, … [Read More...]

200 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...]

ITA Portfolio Performance: 28 January 2012

What a great week for the eleven ITA Wealth Management portfolios!  All showed both absolute and relative positive performance returns.  Every portfolio gained ground on the VTSMX benchmark.  The simple reason is due to rising prices in developed international markets (VEU), emerging markets (VWO), and international REITs (RWX).  In other words, our globally diversified … [Read More...]

400 Level

IVY-2: Ten ETF Portfolio

The second portfolio recommended by Faber and Richardson contains ten ETFs.  There are a few new asset classes added such as small-cap, emerging markets, and foreign or international REITs.  Are we able to improve the Return/Risk ratio and elevate the Diversification Metric with these additions?  Check the analysis below for the answer. A "seat of the pants" analysis … [Read More...]

Asset Allocation or Risk Parity

A Platinum member sent the following summary of an article and asked me to comment.  Note that my response is framed in the context of constructing portfolios through the use of a strategic asset allocation plan.  The Dashboard of the Curie Portfolio, posted this morning, is an example.  The second part is tied to future performance forecasts using software, Quantext Portfolio Planner (QPP).  Here … [Read More...]