100 Level

The Do-It-Yourself Decision

Do you manage your own money or do you seek help from a professional advisor?  Authors Goldie and Murray tilt toward professional management.  They recommend investors who are ill equipped or not interested in managing their own portfolio to use a fee-only advisor rather than a broker. "A broker is working for his firm. An independent fee-only advisor is working for … [Read More...]

How To Invest Simply

  Investing Made Simple Here are a few simple suggestion to get investors off on the right foot.  These suggestions apply to experienced as well as beginning investors. Save more than you think you will need. Build the portfolio around index funds or index ETFs. Learn what it means to rebalance a portfolio. Monitor the Internal Rate of Return (IRR) of the portfolio and … [Read More...]

300 Level

Delta Factor Results From Recommended Stocks

Adding a few recommended stocks to the "Mad Money" group, plus a few more, and Platinum members have the beginnings of some interesting companies.  No recommendations are implied.  I have room for another 15 to 17 before I need to create another list.  ROIC does not have the requisite history, so take that into consideration.  For this QPP analysis I used a 57-month … [Read More...]

Portfolio Performance: 25 February 2011

Photograph: Harvest in the Sacred Valley of Peru with Andes in the background. Portfolio Performance Since posting the last performance table, the February 25 update shows nearly all portfolios gaining ground on the benchmarks.  Several of the larger portfolios also exhibited an increase in both the Sortino and Retirement Ratios.  It seems as if the portfolios are structured to show … [Read More...]

200 Level

Index vs. Passive Investing

Harold R. Evensky, in his Wealth Management: The Financial Advisor's Guide to Investing and Managing Client Assets book, makes a distinction between index and passive investing.  The distinctions can be found at this location.  Few readers are unaware of the differences between active and passive management, but the subtle definitions between index and passive management deserves some … [Read More...]

Portfolio Performance – 1 October 2010

TDAmeritrade came out with the September statements this afternoon so I was able to update many of the portfolios in greater detail that expected. In nearly every case, we made progress either by gaining on the benchmarks or reducing portfolio risk. Only in the case of the Schrodinger Portfolio, where we switched to the ITA Index benchmark for our SR and RR calculations, did we see significant … [Read More...]

400 Level

Risk Reduction Model In Review

When I first began to think about the ITA Risk Reduction model, the idea was to first identify the major asset classes and attach a particular ETF that would capture that particular asset class.  I wanted the coverage to be global in scope, yet confined to a few ETFs so the labor was manageable.  Here are the asset classes I selected for the risk reduction model. U.S … [Read More...]

Update On ITARR Big Seven ETFs

Most of us using the ITA Risk Reduction model are in the "neglect" period so this information is not all that essential.  For those who are still thinking about using ITARR, all but VTI are now priced below their respective 195-Day EMAs.  Yes, IWN, VEU, VWO, VNQ, IGE, and RWX are all priced below their EMAs.  Some are well below while others are only a tad below. Once … [Read More...]