100 Level

Rule #9: Understand Benefits of Social Security

Rule #9 is to understand the benefits of Social Security (SS).  This logic is based on the assumption SS will be operational for years to come.  To make this possible, all congress needs to do is write one line of code into law.  "Remove the cap from Social Security and do nothing else."  That will save SS for those most in need of this leg of the retirement stool.  The other legs are represented … [Read More...]

What Does It Take To Retire?

Retirement Requirements What does it take in savings to live during retirement? Here is data that readers may find of interest as they think about portfolio development and eventual retirement. Assume a couple, nearing retirement, anticipate they will need $80,000 after taxes per year to live during their first year without employment. Between them they will receive a pension of $2,000 per … [Read More...]

300 Level

Momentum-Optimization Analysis of Stock Portfolio

If you have not read the QQP analysis of this set of stocks, do so before reading this blog.  Here is the link to the Quantext Portfolio Planning analysis.  While the QPP analysis provides a probability projection of what one might expect over the next six to twelve months, the following analysis shows where the current portfolio is positioned with respect to an optimized portfolio.  In other … [Read More...]

12-ETF Portfolio: Another Look

A Basic Portfolio Simplicity, when it comes to design, is an admirable feature and the 12-ETF Portfolio embodies this characteristic.  In addition, the projected numbers are quite respectable as readers can see from the following QPP analysis.  When designing or constructing a portfolio specific goals are set, although it is more difficult to attain those goals when the market is priced … [Read More...]

200 Level

Portfolio Performance: 22 January 2011

  While is was not a great week for portfolio returns, most of the updated portfolios showed gains in both the Sortino and Retirement Ratios.  Of the seven portfolios available to Platinum readers, five have positive SR and RR values, not a trivial accomplishment.  The Kenilworth is a very young portfolio so a few dollars difference away from the benchmark causes major swings in … [Read More...]

ITA Portfolio Performance: 26 May 2012

While the individual portfolios increased in value this week, nearly all lost ground with respect to both the ITA Index and VTSMX benchmarks.  That is to be expected any time the market moves up considering that many of the portfolios are out of a number of asset classes and in cash or other income generating instruments.  Portfolios such as the Curie, Newton, Schrodinger, Einstein and … [Read More...]

400 Level

Bonds Add Little Other Than Diversification

Using Delta Factor analysis, bonds will add little growth to portfolios over the next six to twelve months.  Their main benefit is to bring down portfolio volatility and I believe one can do a better job of risk reduction with some highly selected stocks and/or implementation of the ITA Risk Reduction (ITARR) model.  Below is the evidence for my tepid view on bonds going forward. Platinum … [Read More...]

Measures of Portfolio Risk

  Calculating Portfolio Risk If you have been following the ITA Wealth Management blog closely you know that I have been delving into portfolio risk with interest and intensity.  This morning I pulled William J. Bernstein's first investment book off the shelf to see if he had anything to add to this discussion.  Sure enough, "The Intelligent Asset Allocator" includes … [Read More...]