100 Level

Working With The Basic Portfolio

Eventually I plan to move more of the ITA portfolios toward the following 20 ETFs.  In some portfolios I need to broaden the diversification and in others I need to reduce the number of securities in an effort to simplify.  Reducing cost is another motivation as all but two of the following ETFs can be purchased free if one is a TD Ameritrade client.  The two exceptions are GTU and VHT.  In this … [Read More...]

Membership Reminder

This reminder is particularly for Platinum members who, when signed into ITA Wealth Management, see both Gold and Platinum show up under Level. … [Read More...]

300 Level

Sample Portfolio For The Mosaic Investor

Investors who use a few individual stock will be interested in the following portfolio suggested by a reader.  By Mosaic, I mean an investor who uses an array of index ETFs (or index funds) and then sprinkles in some individual stocks. QPP Analysis of Suggested Portfolio:  In this analysis the S&P 500 is assumed to grow at an annual rate of 7.0% so this portfolio is projected to outperform … [Read More...]

When To Buy Back ETFs: Replacing ITARR Sold Positions

When is it time to buy back those ETF positions that were sold when the price of the ETF moved from above to below the 195-Day EMA?  A cogent question came up as a comment this morning.  Here is a paraphrase of the inquiry.  "VEU, VWO, DBC, etc. are all well under their respective RSI 30% indicator.  Even if one is following the ITA Risk Reduction model, does it not make … [Read More...]

200 Level

Retirement Mistake #5: Underestimating Life Expectancy

Not only are we living longer, but we are living healthier lives.  When planning for retirement, what age should one project as the end-of-life year?  When running out retirement projections using the Monte Carlo calculations within the Quantext Portfolio Planner software, I use 100 as the end-of-life year when testing the probability of running out of money.  There are many assumptions that go … [Read More...]

Portfolio Performance: 12 November 2010

Portfolio Performance Data Table Not only did many of the portfolios lose ground, as measured by IRR, most also showed a decline in the Sortino and Retirement Ratios. This again demonstrates just how difficult it is to outperform a broad market index such as Vanguard's VTSMX fund. Below is the table of performance. Overall, we are still doing quite well in meeting our goals, but it has been a … [Read More...]

400 Level

“Delta Factor” Signals for a Variety of Equity ETFs

Delta Factor Analysis of Equity ETFs Which ETFs appear to be priced for purchase at this time?  In the screen shot below Platinum members will find all the basic ETFs we use in our portfolios to cover the global equities market.  There are only a few ETFs that are priced to buy. … [Read More...]

Preparing for Euclid Update

This pre-update is something I've not done before as I did not have some of these tools just a few weeks ago.  This blog entry takes a look at the Efficient Frontier of the Euclid and compares it with the S&P 500.  In addition, I look at the Rankings to see if some available cash might be used to bolster shares in ETFs that are expected to perform well over the next few months. Efficient … [Read More...]