100 Level

Retirement Planning Web Sites

Below are links to three sites that will aid you in planning for retirement.  These resources come from Vanguard, The Motley Fool, and Fidelity. Here at ITA Wealth Management, we also have a retirement planner, but we require more information than the three sites referenced below. Here are the three references. 1. Vanguard site can be found here. 2. The Motley Fools site can be found at … [Read More...]

Investing Made Simple: Eight Basic Rules to Follow

As a review, here are the fundamental principles of investing. Follow The Golden Rule of Investing by saving more than you think you will need. Develop an investment plan and follow it. Build the portfolio around index funds or index ETFs.  I prefer low-cost ETFs.  Eschew individual stock selection as it is a losers game for all but a few. Diversify all over the globe.  Think outside the … [Read More...]

300 Level

Optimizing the “Swensen Six” Portfolio

To answer the question of how much the "Swensen Six" portfolio changes when placed under the optimization microscope, here is the following analysis.  The percentage changes from asset class to asset class are not as different as one might expect. This material is not available for publication elsewhere on the Internet. … [Read More...]

Einstein Portfolio Review: August 13, 2011

Although the Einstein Portfolio is not scheduled for a review, shares of VEU were added to the portfolio this week.  This purchase brings the developed international markets asset class closer to the target range of 15.0%.  In the first screen shot we see the Strategic Asset Allocation plan presented in tabular form.  I've not made the decision to eliminate mid- and small-cap … [Read More...]

200 Level

Portfolio Performance – 27 August 2010

While this was not a particularly strong week for the broad market, the six (Curie, Newton, Schrodinger, Einstein, Kepler & Bohr) portfolios I updated this week performed better than expected. In general, the six portfolios showed improvement in both the Sortino and ITA ratios. Due to broad diversification, most of the six picked up ground on the broad market as measured by the VTSMX … [Read More...]

Portfolio Construction

There are many different schools of thought when it comes to creating a portfolio, but how you proceed will depend on several different factors. Attitude to risk, targeted returns and available length of time to invest are all aspects that need to be built into any plan. Strategic asset allocation is one way of managing a portfolio that can accommodate different attitudes to risk, which in … [Read More...]

400 Level

Ten Best Investment Books

Education is a step toward financial success. Where does one begin when trying to come up with the top ten investment books? Here is my list, but be forewarned, this is not a list of books that focus on either fundamental analysis of stocks, nor is it a list of books explaining technical analysis. In fact, the list below is the antithesis of stock picking. My list of the top ten investment books … [Read More...]

Retirement Portfolio: Part Five

If one is willing to add a few individual stocks to a sample retirement portfolio, what does the allocation look like when optimized?  In the following portfolio I added several ETFs to what one might consider the basic group.  These include SLV, DVY, and IDV where the latter two are dividend generators. Special Note:  The assumed growth rate of the S&P 500 was lowered from 7.0% to 6.0% for … [Read More...]