100 Level

Different Styles of Investing*

Let me pose a problem or situation to ITA Wealth Management readers.  We have two intelligent investors who approach investing from entirely different philosophies. For simplicity we will call them Investor A and Investor B.  Investor A is an active manager and readers have already know what active management entails.  Investor B is a passive manager and you know a bit about passive … [Read More...]

Investment Articles of Interest

Two articles of interest to investors are the following. The first article was written by Geoff Considine with the title, An Important Challenge to "Stocks for the Long Run."  Jeremy Siegel is the author of the 'Long Run' book. The second article is actually a transcript of a debate between Siegel and Zvi Bodie.  This paper can be found on one of my blog sites … [Read More...]

300 Level

Sortino Worksheet: Review of How to Update the Sortino-Retirement Ratio Worksheet

We are in the middle of the month so those who are updating the Sortino Ratio (SR) worksheet inside the TLH Spreadsheet every two weeks will want to make the changes after the market closes today.  … [Read More...]

The Art and Science of Portfolio Construction

Basic investment principles require long-term portfolios exhibit the following characteristics. 1.  Equity orientation. Equity orientation includes high-expected return ETFs such as VTI, IWN, VTV, VOE, VOT, VBR, VBK, etc. 2.  Diversification over the entire world market. International exposure is possible through ETFs such as VEU, EFA, VWO, EPP, etc. This blog post is not … [Read More...]

200 Level

Preparting for Retirement: A Financial Problem Demanding a Solution

Preparing for the financial aspects of retirement is reaching a crisis level in the United States - if articles and government statistics are close to truthful.  Here are a few sobering links to information about this growing problem. The End of the American Dream Americans Not Ready for Retirement Retirement ready--or not? It is difficult to advise someone to save if they … [Read More...]

Monte Carlo Retirement Calculator

Have any readers heard the example of saving $2,000 per year starting at age 19, and only saving for eight years?  Assuming a return of 10% a year, how much will this individual have at age 65?  Then we take another investor who begins saving $2,000 per year on the year the first investor stopped.  The second investor also is fortunate enough to earn 10% per year.  Keep in mind … [Read More...]

400 Level

Portfolio Preparation for Euclid and Maxwell Portfolios

In preparation to activate the return-uncertainty plan for the two under performing portfolios, I set up several sell moves for each portfolio.  The first thing I did was to place trailing stop loss orders for each ETF now in the portfolio, but not part of the future plan.  Shares of VOE, VBR, VOT, VO, VTV, and VSS will be sold when the strike price is hit for each ETF. … [Read More...]

What Is A Good Sortino Ratio?

Seeking a Good Sortino Ratio A reader of ITA Wealth Management was seeking an answer to the question, what is a good Sortino Ratio?  The simple and quick answer is - anything above zero.  Check this definition of the SR.  While the equation is quite simple, the difficulty comes in calculating the denominator. SR = (P - T)/DR where P is the portfolio return T is a portfolio … [Read More...]