100 Level

Portfolio Construction

  With the advent of commission free ETFs, TDAmeritrade made it simpler to construct a portfolio.  Readers can watch the slow development of the Kenilworth Portfolio as an example.  Once you have selected the 10 to 15 asset classes, just "stair-step" the building process into a robust portfolio.  Here are my thought processes as to how to assemble a portfolio. … [Read More...]

Easy Portfolio: Starting From Scratch

If you have nothing, how do you begin saving for a retirement portfolio. 1. Pull the change out of your pocket every evening and stick it in a jar. 2. Carry your lunch to work and save the difference. 3. Use the library instead of purchasing books. 4. Drink tap water instead of bottled water. 5. Stop smoking as you are burning up your retirement. … [Read More...]

300 Level

Rebalancing Portfolio: Blending Dashboard and Optimizer

Now that an optimizing tool is available, how does one rebalance a portfolio by combining the output of an optimizer with the Dashboard guidelines?  The larger topic is one of asset allocation so I will start with the following Dashboard that defines an asset allocation plan. Dashboard:  Assume the following Dashboard lays out the Strategic Asset Allocation plan for a portfolio.  Only pay … [Read More...]

Einstein Portfolio Review: 6 February 2012

Review time is here again for the Einstein Portfolio.  Examining the Dashboard or Asset Allocation plan, shown below, is the first task when updating or reviewing a portfolio.  Actually, I check the broker account to make sure all transactions are current.  While it took a little time and patience, the portfolio is now in balance with exception of Small-Cap Growth, and that asset … [Read More...]

200 Level

SORDEX Ratio Blog Post Reworked

I just reworked an older SORDEX blog post.  The reason I did not bring this post forward is that there are links when one searches for this information on the Internet and I don't want to break those links. I will likely rework this concept using the latest projected portfolio volatility as the numbers don't look quite so bad with the lower standard deviation projections. … [Read More...]

Annuities: Are They For You?

To read this article over on Seeking Alpha, go to this site.  There are links available you will not find in the posting below. … [Read More...]

400 Level

Feynman Portfolio Study – Part 1

This first Part of the Study identifies the 10 Asset Groups and 18 individual EFTs that comprise the Feynman Portfolio and looks at the general market behavior, as defined by the Vanguard Total Stock Market Fund (VTSMX), over the 6 year period from 06/29/2007 to 06/30/2003.  The VTSMX will be used as the reference, or benchmark, for comparison of portfolio performance through each future phase of … [Read More...]

Risk Reduction Model Clarification

In an effort to clear up some misunderstandings surrounding the ITA Risk Reduction model, permit me to go into a few more details.  My initial move, late last year, was to examine a number of portfolios I track and select several that were lagging the VTSMX benchmark.  Initially, I was only going to apply the ITARR model to three portfolios; Maxwell, Euclid, and Madison.  While the … [Read More...]