100 Level

Portfolio Construction: Asset Allocation Percentages Are Vital To Success

 Photograph: Fisherman in Greek Islands   This Blog is dedicated to helping the beginning investor build and monitor a portfolio.  Here are a few of the basic guidelines. Skew the portfolio toward small-cap ETFs and play down large-cap ETFs.  Evidence for this shows up in the Portfolio Performance data tables. Emphasize value over growth as value outperforms growth … [Read More...]

Advice for a Beginning Investor

This week I met a woman (I'll call her Rose) who was asking for investment advice.  Rose is new to investing and wanted to know how she can begin investing in the stock market.  Here is the advice I passed on and if other readers want to add to this basic advice, post your ideas in the comments section associated with the blog entry. 1.0  Open up an account with TD … [Read More...]

300 Level

ITA Index: Recalibration

Photograph: Cologne Cathedral - Photo by Ken Appel   Recalculation of ITA Index As I mentioned in a comment yesterday, I've come to the conclusion that the ITA Index needs a calculation overhaul.  Instead of using each and every asset class from the "Big Nine" U. S. equity classes, I am lumping all of these asset classes into one benchmark and that is the reliable VTSMX index fund.  In … [Read More...]

QPP Analysis of Conservative Portfolio

One of the services for Platinum members is to run an evaluation of their portfolio, and this is such an analysis.  Readers will see the Quantext Portfolio Planner (QPP) projections for a portfolio that holds several Canadian ETFs.  One note of interest.  The VSB.TO does not have a three-year record, so that will skew the results, particularly since 20% of the portfolio is allocated to that … [Read More...]

200 Level

Risk Reduction Portfolio: A Potential Asset Allocation Plan

Bob Warasila, author of the "New Normal" portfolio, sent me an asset allocation plan that is worth sharing with Platinum members.  This Risk Reduction Portfolio differs slightly from one I recently posted over on Seeking Alpha in that this portfolio has a small exposure to precious metals and it also includes on stock.  In the following three screen shots readers will find the … [Read More...]

Stress Testing the Modest Retirement Portfolio

Back on January 7 of this year I posted a "Modest Portfolio" that readers can locate and see the entire analysis.  Below is the same portfolio with a stress test included.  Since this is a middle of the road type portfolio, it is an excellent example to use for a stress test. The portfolio holds only nine ETFs and there are times when one will want to be out of SDS.  Now … [Read More...]

400 Level

Retirement Target Return

Retirement Target Return What is the Retirement Target Return (RTR) all about?  RTR is one of the factors found in the Retirement Ratio (RR) risk management equation. ITA Wealth Management readers know the importance of measuring portfolio risk and RTR is part of that process. Here is exactly how RTR is determined. RTR is the sum of the current inflation rate plus the percentage one … [Read More...]

“Delta Factor” for Bond ETFs

A week to ten days ago I promised to run a "Delta Factor" analysis on the bond ETFs we use in a variety of portfolios.  One Platinum member requested CSJ be included in the analysis and here it is in the following screen shot. … [Read More...]