100 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...]

Portfolio Performance Data Table: 30 October 2012

Since the last portfolio performance update over a month ago, every portfolio with exception of the Euclid gained ground on the VTSMX benchmark.  All portfolios except for the Euclid and the Einstein gained ground on the ITA Index, the benchmark that is customized to measure relative performance for each portfolio.  These performance gains also improved the Sortino and Retirement Ratios. In … [Read More...]

300 Level

Low Risk Portfolio: Part II

A variation of the low risk portfolio posted yesterday is found below.  Since VCLT has a limited historical record, I removed it from the portfolio and added 5% through HCP, another dividend paying stock.  Both projected return and risk are a little higher in this portfolio as compared to the one posted yesterday.  Since the changes were so slight, the variations in the key metrics … [Read More...]

Kepler Portfolio Update: 15 December 2011

The Kepler Portfolio is a broadly diversified array of ETFs that encompass global markets.  We do not hold any international bonds and there are no plans to expand into that asset class for this portfolio.  Below is the Dashboard, the familiar worksheet extracted from the TLH Spreadsheet.  The international REITs asset class is empty as I sold all shares to take a tax loss for the … [Read More...]

200 Level

Capital Markets Outlook and Retirement Payout Percentage

Platinum members are well aware of my conservative recommendations when it comes to the payout percentage during retirement.  While it is common to suggest a payout of 5% during retirement, I advocate pulling out as little as 2% per year and no more than 4%.  Lowering the payout rate "insures" one will not run out of money in retirement.  I hope to have a spreadsheet that … [Read More...]

Requesting Yield To Exceed 3.0%

This morning I had an article published over on Seeking Alpha.  One reader requested what would happen if one of the constraints was to seek a yield of 3.0% or higher.  Below is the Optimization Analysis that meets this request when using the 16 ETF portfolio. The add link function does not seem to be working this morning so below is the URL to the SA … [Read More...]

400 Level

Are There Any Buys Remaining In The Equity Market?

What opportunities remain, if any, in the equities (stocks) as this market continues at a high level?  While the follow are only projections, it appears as if we are not at a market inflection point.  Nevertheless, the probability of strong growth over the next few months does not look positive. … [Read More...]

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...]