100 Level

Goofus vs. Gallant

As a follow up to The Golden Rule of Investing, I am bringing this post forward so new readers of ITA Wealth Management will not miss it. This post drives home the importance of investing frequently and early. As a small boy, my family subscribed to a magazine called “Children’s Activities.” Each issue contained a story of two characters, Goofus and Gallant. We all wanted to be … [Read More...]

Solving Investing Problem #1: I have no interest in investing.

 Individuals who have no interest in investing better hire a fee-based advisor.  Whether or not one is interested in the intricacies of investing, it is important to save for retirement or other goals.  Decision number one is whether or not you will manage your own money.  Just remember that paying someone else is going to cost a lot of money and place a performance burden on … [Read More...]

300 Level

Latest ETF Rankings

Anyone updating their portfolio tomorrow can make use of the latest ETF rankings.  Concentrate on ETFs that are outperforming the SHY or even SHY and VTI. … [Read More...]

Sample Portfolio QPP Analysis for Client

One of the services I provide to Platinum members is to run an analysis of their portfolio.  The following is a Quantext Portfolio Planner (QPP) analysis of a sample portfolio.   There are two securities, IEFA and ELD, that have short records and those tend to improve the results of the analysis. QPP Analysis:  Assuming the S&P 500 will grow at a 7.0% rate over the next year, this portfolio … [Read More...]

200 Level

Developing a Strategic Asset Allocation Plan

The “Golden Rule of Investing” is to save as much as you can as early as you can.  That simple guideline is fundamental to any investment plan and it is critical to know why the word early is so important.  What comes second (portfolio planning) is also important, but it cannot be implemented unless one has saved money for investing. In this post, we assume the reader has a … [Read More...]

Asset Allocation: The Basic 17 Asset Classes

Much is made of the importance of asset allocation here at ITA Wealth Management.  Not all portfolios tracked on this blog use the seventeen asset classes, but we want to list the stable of assets we draw from depending on the size of the portfolio and goals of the investor.  Cash is included as one of the 17 in the data table shown below. Below the title row we have the three cap sizes ranging … [Read More...]

400 Level

Seeking For Low Correlated ETFs

When the market shies away from equities and gravitates toward less volatile securities such as bonds and treasuries, we need access to those ETFs that have a low correlation with holdings such as VTI, VEU, and VWO.  What ETFs do we flee to when the equities market begins to wane.  If included in the ranking worksheet, we can easily identify those ETFs that have the strongest … [Read More...]

Containing Portfolio Risk

It will be a close call for many asset classes held in the Madison Portfolio when it comes up for examination on Wednesday of this week.  Developed international markets (VEU) is just one example of the narrow gap between the price of the ETF and its 195-Day Exponential Moving Average (EMA).  While most of the asset classes have a cushion before a sell signal is given, several of the … [Read More...]