100 Level

Five Basic Rules of Investing

  Basic Rules of Investing A Review   Rule #1: Think through why you are setting up a portfolio.  What are your goals?  Develop a Portfolio Policy. While there are many sub-rules within this fundamental rule, at least begin with some sort of Strategic Asset Allocation plan.  Many are given as examples on this blog. The planning stages requires reading, and I … [Read More...]

Passive Management: A Tight Definition

Passive Management carries many meanings so I leave it to Harold Evensky to straighten us out as to what is meant by Passive Investing. In his excellent book, "Wealth Management" he provides this crisp definition. "Passive Management is the antithesis of active management. Its core philosophical tenet is that by brains, hard work, and technology, a manager cannot, over time and net … [Read More...]

300 Level

Portfolio That Reduces Risk

Are you looking for a portfolio that pulls down the projected standard deviation?  If so, take a look at the asset allocation mix shown in the following analysis.  I would classify this portfolio as conservative. … [Read More...]

Supercharging Portfolio With Low Beta Stocks

In response to recent discussions surrounding Geoff Considine's article, "Why Low Beta Stocks Are Worth a Look," I put together a simple portfolio made up of several ETFs found in many of the ITA Wealth Management portfolios.  I added two low volatility ETFs, SPLV and USMV.  These are new ETFs requiring a shorter time frame in the following QPP analysis. … [Read More...]

200 Level

Asset Allocation Performance Data

Portfolio Performance Below is the performance data table for the portfolios tracked here at ITA Wealth Management. If the percentages seem exaggerated, note the launch time as young portfolios will show unusual results. Over time the higher percentages will begin to migrate toward values of the VTSMX benchmark. Readers should pay attention to the Sortino Ratio (SR) and Retirement Ratio (RR) as … [Read More...]

Rule #8: Should I Invest In a Roth IRA or Traditional IRA?

Which type of IRA account should one use for a personal retirement account?  Is it best to use the Roth IRA or traditional IRA.  With the Roth IRA, one pays the taxes before investing and the money is available tax free in retirement.  With the traditional IRA, one deducts taxes going in and pays taxes when the money is withdrawn.  You may find this surprising, but it makes no difference which you … [Read More...]

400 Level

Reviewing RSI and PnF Technical Indicators

Checking RSI and PnF Graphs Periodically I'll go through the ETFs held in most of the ITA Wealth Management portfolios and give each a visual technical check.  This examination is nothing more than a quick performance look of the Relative Strength Indicator (RSI) and the Point and Figure (PnF) graphs.  In the two links I use VWO as the example ETF. … [Read More...]

Reducting Risk With The Euclid Portfolio

The 12th of the month is the day to closely examine each ETF used to populate the Euclid Portfolio, one of ITA Risk Reduction model portfolios.  While the markets have several hours before they close, it is highly unlikely any of the ETFs will change positions with their respective 195-Day Exponential Moving Averages (EMAs).  Here is the process I went through in my examination of the … [Read More...]