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...]

Grandchildren: Rebalance Portfolio When Necessary

Keep the different asset classes within 25% of the target set up in the Strategic Asset Allocation plan.  In the little book, "The Investment Answer," rebalancing is the fifth critical decision for investors.  In my opinion, rebalancing is one of the minor hints of investing, particularly if new money is coming into the portfolio.  Just keep purchasing ETFs that represent … [Read More...]

300 Level

Bond Bubble: TAA Changes Required

Tactical Asset Allocation for Bonds Over the last few months I've been reducing holdings in bonds and treasury ETFs.  Reduction in ETFs such as BND, HYG and TLT is not a permanent change, but one I am making due to inflation pressure and the very low interest rates.  Decreasing the asset allocation to bonds and income falls under an active management decision called Tactical Asset … [Read More...]

Revised Gauss Spreadsheet

Here is the link to the corrected Gauss Portfolio.  I had an error in the ITA Index calculation. … [Read More...]

200 Level

Retirement Planning: Using the Kenilworth Portfolio As A Model

Two young portfolios, Gauss and Kenilworth, found here on ITA Wealth Management serve as examples for retirement planning.  For this blog post, I'll use the Kenilworth as the example since it began with a modest initial investment of $1500 followed by monthly contributions.  Platinum members have access to all the transaction details. The first move in any retirement plan is to do … [Read More...]

Portfolio Performance: 10 February 2012

All the portfolios were in good shape until Friday's market hit.  The downturn in the three critical international classes hurt most of the ITA Portfolios as they are global in their asset allocation structure.  Therefore, most gained a little ground on the ITA Index while loosing traction to the VTSMX.  The difference is that the ITA Index is a customized benchmark that … [Read More...]

400 Level

Kenilworth Portfolio Review: 24 April 2012

Today is monthly review time for the Kenilworth Portfolio.  Checking the critical ETFs, three of eight ended up in the "sell" zone, but two are so close the end of day price could reverse the trigger.  Since I will not be making any moves before the business day tomorrow, I'll wait to see the opening prices for VEU and VWO. The Dashboard is shown in the following screen … [Read More...]

International Equities: “Delta Factor” for Different Periods

After alluding to how "Delta Factor" projections might be used to enhance the performance of a portfolio, some attention needs to be paid to the time span selected for the analysis as it does make a difference.  To illustrate this point, I've selected a number of international equity ETF representing different countries.  Platinum members will see the list in the following … [Read More...]