100 Level

Requirements For Selecting A Money Manager

What To Look For When Selecting A Money Manager While I am a strong advocate of "do-it-yourself" investing, there are situations were a money manager is useful.  How does one select a manager?  Here are a few suggestions. 1.  Seek a trusted friend and ask them who they use as a money manager.  Ask around. 2.  Is the manager certified?  In "The … [Read More...]

Investment Book Recommendation

I've run across another excellent investment book, this one written by Daniel R. Solin. "The Smartest Portfolio You'll Ever Own" is worth your time and money.  There are a number of portfolios suggested in the book and I was going to start analyzing them later this week.  Unfortunately, several suggested ETFs do not have the required history.  Therefore I will need … [Read More...]

300 Level

Sample Portfolio Analysis

An ITA reader sent in the following portfolio for analysis.  Two funds, VXUS and VNQI, had short histories so the analysis is limited to 25 months of data.  Below is the QPP analysis and the correlation matrix for this group of holdings.  The S&P 500 is assumed to return 7.0% over the next six to twelve months. QPP Analysis:  Anytime a portfolio is projected to return approximately 100 … [Read More...]

Kenilworth Portfolio Review: 8 August 2011

Below is the Strategic Asset Allocation plan for the Kenilworth Portfolio.  It is not unexpected to see this young portfolio dip into negative territory considering the severity of this bear market.  As Rep. Boehner stated, "I got 98% of what I wanted."  Now we are witnessing exactly what he meant by that statement.  The Kenilworth, as is the case with most … [Read More...]

200 Level

8 Dividend Stocks Supercharge the Swensen-Six Portfolio

Eight dividend aristocrats added to the "Swensen-Six" Portfolio boost return, increase yield, without doing extensive damage to the portfolio volatility. The following screen-shots show the original "Swensen" portfolio, a supercharged version, the correlation matrix for the supercharged portfolio, and the "Delta Factor" projections for the supercharged portfolio when … [Read More...]

Second Retirement Rule: Know Your Requirements

While there is no question about Rule #1 of following The Golden Rule of Investing, all rules thereafter could come in any order.  The second one I've selected is to know your retirement requirements.  How much will you need monthly to live comfortably?  It is not unusual to hear a figure of 80% of your last salary.  I would set that as a minimum figure.  If your last annual salary was $70,000 per … [Read More...]

400 Level

Delta Factor: What Is It?

Exactly what is the "Delta Factor?"  While I don't plan to reveal the exact algorithm, here are the basic ideas.   1.  A growth projection is estimated for the S&P 500 for the next year.  In most cases, I assume the S&P 500 will grow at an annualized rate of 7% over the next several months. 2.  The historical period is set for three to five … [Read More...]

Retirement Target Return

Retirement Target Return What is the Retirement Target Return (RTR) all about?  RTR is one of the factors found in the Retirement Ratio (RR) risk management equation. ITA Wealth Management readers know the importance of measuring portfolio risk and RTR is part of that process. Here is exactly how RTR is determined. RTR is the sum of the current inflation rate plus the percentage one … [Read More...]