100 Level

Motley Fools, Passive & Active Investing

Photograph:  Mt. Bachelor in Central Oregon If you need more evidence to support passive rather than active investing, here is another article on what is happening over on the Motley Fools web site.  In the 1990s, I was a regular reader of material on the Fools site. At the time is was the most popular investment web site to visit.  I devoured their popular book, "The Motley … [Read More...]

Defensive Portfolio

One Platinum member located a post I wrote back on October 9, 2010, only the QPP analysis was missing.  What I wrote is the following. This morning I set out to create a portfolio where the projected annual return exceeds 8%, the projected risk is below 13%, and the Diversification Metric exceeds 40%. In addition, I wanted the Return/Risk ratio to be greater than 0.60. The following screen shot … [Read More...]

300 Level

Asset Allocation: A Look Back

Mosaic Portfolio Lookback - 10/1/2007 Asset allocation is at the core of our portfolio plans.  In the following screen shot, Platinum members see a generic portfolio that is Mosaic in nature.  By Mosaic I mean the portfolio contains both ETFs and individual stocks.  While this is not an ideal portfolio, it illustrates the points I am making over the next several blogs entries. The … [Read More...]

TLH Spreadsheet Audio Clips

To accurately track and monitor the performance of your portfolio, as well as several benchmarks, I highly recommend each investor seriously consider learning how to implement the Thomas-Lalla-Herr (TLH) spreadsheet.  Below are a number of audio/video help sessions that will answer many of your questions.  If you are still puzzled, post issues in the Comments section of any blog entry … [Read More...]

200 Level

Retirement Requirements

Fidelity Investments came out with a study showing that retirees need approximately eight times their last salary level to be properly prepared for retirement.  For example, if one is earning $60,000 at age 65, $480,000 is the retirement base line.  Frankly, I think the number eight is too low.  There are a number of ways to determine what the retirement savings level should be and … [Read More...]

Smartest Low-Medium Risk Portfolio

With this low-medium risk portfolio we move up one notch in aggressiveness. This is still a very conservative portfolio with 60% committed to the bond/income asset class. Moving from 80% in bonds down to 60% brings about an increase in both projected return and projected uncertainty.  The Return/Uncertainty ratio is still a respectable 0.62. Platinum membership is available for a low $5.00 … [Read More...]

400 Level

Adding SDS to Reduce Portfolio Uncertainty

Another risk reducing card to use with the ITARR model is the ultra-short ETF, SDS.  By allocating 10% of the portfolio to SDS, we make a significant difference in breaking the back of portfolio volatility.  While the projected return is lower, take note of the dramatic increase in both the Return/Uncertainty ratio and the Diversification Metric (DM). … [Read More...]

Three-Year QPP Analysis for Equity ETFs

Now that you have had a few hours to digest the prior blog post where I used four years of historical data, the following table uses the "default" period of three years.  What a difference one year makes.  I've only seen this much "blood" when the market was at or near a peak. … [Read More...]