100 Level

Grandchildren: Cut Credit Card Debt

Photograph: University of Glasgow in Scotland Grandchild suggestion #2 is another form of suggestion #1.  Avoid credit card debt.  Pay off the credit card debt every month. It makes no sense to be paying out interest in excess of 10% while investments are returning less than that percentage. Getting into credit card debt is a financial tar pit.  Stay out. … [Read More...]

Preparing for Retirement: Avoid the Dunning-Kruger Effect

A few days ago I came across an article on the psychology of investing over on the Portfolioist blog.  The article is written by Daniel R. Solin, author of "The Smartest Portfolio You'll Ever Own." Readers will recall that I analyzed some of the portfolios from the Solin book here on ITA Wealth Management.  When I read articles of how our brains can get in the way of … [Read More...]

300 Level

“Creme List” for 8 July 2011

Twenty-five companies made the elite list this week, the largest number in recent memory.  No new companies cracked the "Creme List" and only one was cut from the list. For new readers, note that the "Creme List" comes from a very old tradition that goes back beyond the creation of ITA Wealth Management.  While I've moved through my stock picking days, I now … [Read More...]

Kenilworth Portfolio Review: 20 September 2011

As mentioned in the middle footnote of News and Updates, the Kenilworth is scheduled for an update this week.  Since the last review, shares of VOT, VWO, RWX, and VUG were added to this portfolio in an effort to bring more asset classes into balance.  I also altered the asset allocation slightly by reducing bonds/income and increasing international REITs.  The yield is so high on … [Read More...]

200 Level

Schrodinger Portfolio Review: 3 July 2012

Passive is the key word when it comes to managing the Schrodinger Portfolio.  No transactions occurred over the last several months except to add dividends to the cash account.  All asset classes are in balance as shown in the following Dashboard worksheet.  We use sixteen asset classes in this portfolio as I have never added international bonds to the mix. … [Read More...]

Five Essential Financial Directives

Five Essential Financial Guidelines   1) Pay down credit card debt and never, ever borrow from a bank using a credit card. There is no way you will earn as much year after year through investments as you are paying interest on credit card debt. Simply put, pay off the credit card balance in full each month. There is no interest rate to hate as much as credit card interest. 2) Save as … [Read More...]

400 Level

Worry Free Investing: Young Readers – Listen Up!

No, I am not obsessed with risk even though I've recently written quite a bit on the subject.  Why the concern about risk as the market seems to be having a good summer?  The specter of rising interest is a major fear for this reason.  If interest rates were to rise to the same level they were when George Bush (43) took office, the amount of money the U.S. Government will need … [Read More...]

Positioning the Maxwell, Euclid, and Madison

In preparation to launch the ITA Risk Reduction model for the Maxwell, Euclid, Madison, and possibly one or two more portfolios, the basic asset allocation is laid out below.  SDS is shown only as a possibility in unusual circumstances.  The percentages as shown apply only when the ETF price lies above its 195-Day Exponential Moving Average (EMA).  Such is not the case right now as … [Read More...]