100 Level

Multi-Asset Class Investing

Multi-asset class investing or multiple asset classes is a title that comes right out of Richard A. Ferri’s excellent book, “All About Asset Allocation.” While my reference is to Ferri's first edition, I would pay the few extra dollars and purchase the second edition.  Nudged by a fellow asset allocation investor, I went back and reread Chapter 4 of Ferri’s book. … [Read More...]

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...]

300 Level

“Creme List” for January 14

  "Creme List" of Stocks Platinum members will find few changes in the "Creme List" this week.  Coach (COH) is back on the list, but otherwise, no significant changes. If you are running QPP portfolio analysis, adding three to five of these high quality companies will frequent increase the overall diversity and elevate the Diversification Metric. … [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

Portfolio #5: Ages 66 – 100

Retirement Portfolio Constructing a portfolio for the retirement years requires one to focus on portfolio risk or uncertainty while not neglecting return. If the portfolio asset allocation plan is too conservative, the return will not meet lifestyle expectations. Inflation is again on the rise and this needs to be taken into consideration when putting together a retirement oriented portfolio. … [Read More...]

Disadvantages of Passive (Index) Investing: Are There Any?

The arguments in favor of passive investing are far too compelling to completely ignore.  If there are any disadvantages, what are they? 1.  At one time the availability of passive or index funds were limited, particularly in certain asset classes.  Availability of index funds is no longer a problem as ITA readers know.  We can find an index ETF to fill every asset … [Read More...]

400 Level

Preparing For Kepler Review

In a few days the Kepler Portfolio comes up for review, so here is the preparation material.  I'll walk readers through the Efficient Frontier, Ranking, and Buy-Hold-Sell (BHS) recommendations. Efficient Frontier:  The Kepler requires some adjustments before the current allocation is fully optimized.  What to do is shown in a later screenshot.  Holdings such as TIP are not improving the … [Read More...]

Risk Defined

Portfolio Risk Risk is a messy word as it carries so many different meanings in the investing world.  In the most general sense, it means we don't know what is going to happen.  Here are several specific meanings of the term.  We will begin by defining "systematic" and "specific" risk. 1.  "Systematic" risk is risk we cannot avoid if we seek returns higher than the interest rates from a money … [Read More...]