100 Level

Asset Allocation for IRA Risk Reduction Portfolio

What does the asset allocation plan look like for the ITARR style portfolio?  Below is the current Dashboard for the Euclid, one of the risk reduction test portfolios.  The target percentages have the white background and the actual percentages currently held in the Euclid have colored backgrounds.  Depending on how the basic ETFs close today, this portfolio will undergo major … [Read More...]

Keeping Portfolios Simple

Three Sample Portfolios Complicated portfolios discourage investors and that is why I am attempting to simplify the portfolios tracked here at ITA Wealth Management.  There are many examples of possible portfolios in the literature, particularly in books by Faber-Richardson, Swensen, and Bernstein.  Let's start with one of the simple portfolios laid out by David Swensen. While Swensen does not … [Read More...]

300 Level

Highly Selected Stocks

One of my data sources changed their format and the changes eliminated information I use in my "Watch List" spreadsheet.  Unless I am able to find that data, I will need to change the makeup of my "Creme List."  For investors who use a few individual stocks in their portfolios, I will continue to post a list of interesting companies.  It will differ from the old … [Read More...]

“Creme List” – 5/6/2011

Twenty-three stocks made the "Creme List" this week, one of the highest numbers on record.  No stocks were eliminated from the list and four were added.  All of the newly added companies were on the list at one time.  I think I've posted this list for well over ten years. … [Read More...]

200 Level

Retirement Portfolio: Part Three

Part three of this series of retirement preparations shows how one might optimize the array of ETFs presented in the earlier two blog posts.  In the following screen shot I set up a number of constraints and one was to hold the Diversification Metric to the 40% standard.  I also included BND, Vanguard's Total Bond ETF in the mix of investments.  Even by forcing none of the bonds to hold more than … [Read More...]

Ultra Capital Preservation

On occasion, readers ask for advice on asset allocation plans.  Most of the portfolios tracked on this blog are classified as balanced, growth, or even aggressive growth.  Holders of the "science" portfolios are younger, have very long-term goals, or have other means of income so very conservative portfolios are not appropriate.  As a result, no portfolios are what I would … [Read More...]

400 Level

Risk Reduction: End of Month Analysis

If we were at the end of the month, how would we handle the ITA Risk Reduction model?  What ETFs would we be buying and which would we continue to place in the "neglect" bin for another month?  Checking StockCharts, three of the seven crucial ITARR ETFs are in the buy mode, while four are still well below their 195-Day EMAs. … [Read More...]

Retirement Portfolio: Part Five

If one is willing to add a few individual stocks to a sample retirement portfolio, what does the allocation look like when optimized?  In the following portfolio I added several ETFs to what one might consider the basic group.  These include SLV, DVY, and IDV where the latter two are dividend generators. Special Note:  The assumed growth rate of the S&P 500 was lowered from 7.0% to 6.0% for … [Read More...]