100 Level

Rule #9: Understand Benefits of Social Security

Rule #9 is to understand the benefits of Social Security (SS).  This logic is based on the assumption SS will be operational for years to come.  To make this possible, all congress needs to do is write one line of code into law.  "Remove the cap from Social Security and do nothing else."  That will save SS for those most in need of this leg of the retirement stool.  The other legs are represented … [Read More...]

Six Asset Class Portfolio

Adding REITs to the three essential asset classes plus treasury (TLT) did not improve the projected Return/Uncertainty ratio as expected.  However, we are not about to eliminate REITs as an asset class.  There were periods over the last eleven years when REITs provided a buffer to a very volatile market. What happens if we reduce the percentage allocated to REITs and add a commodities … [Read More...]

300 Level

“Creme List” of Dividend Stocks

ITA Wealth Management readers know the pitfalls when it comes to selecting individual stocks and populating a portfolio with nothing but stocks.  Nevertheless, from time to time I post a list of stocks that ITA readers may find interesting.  Here is that list of stocks. The following screen and list of companies is reserved for Platinum members only and may not be published elsewhere. … [Read More...]

Kepler Portfolio Review: 9 April 2012

Two portfolios are scheduled for review this week and the Kepler is one of the two.  This portfolio has its roots going back to the mid-1990s when I advised the holder to populate it primarily with individual stocks.  In the early 2000s I began to advise a shift toward ETFs as iShares was opening up a wide array of options and I began to read about the advantages of index … [Read More...]

200 Level

Preparing for Einstein Update

One of the primary reasons for the advanced preparation for the Einstein update is to show readers a list of ETFs that provide global coverage while including enough low correlated ETFs for all types of markets.  This list of ETFs does not differ all that much from the 18 used in The Feynman Study.  Instead of many iShares I've substituted Vanguard ETFs as they have sufficient historical records … [Read More...]

Ultra Capital Preservation Portfolio Revised

Last week I laid out the Ultra Capital Preservation Portfolio. That portfolio contained an error and in this blog post I make the correction.  Instead of using IWN, I meant to use IWM.  IWN is a value oriented ETF, and I intended to use the broader ETF, IWM.  Here is the QPP analysis on the portfolio I intended for the Ultra Capital Preservation. … [Read More...]

400 Level

Portfolio Risk: How To Manage It With Care

Managing Portfolio Risk* Risk is one of the least understood concepts when it comes to investing, so it is time we insert some discussions into the mix of portfolio construction. I am going to quote Mark Hebner and link to his outstanding web site frequently as he does an excellent job of describing and defining risk. Let us first begin with a definition of Standard Deviation (SD) as it is … [Read More...]

Preparing For Kepler Review

In a few days the Kepler Portfolio comes up for review, so here is the preparation material.  I'll walk readers through the Efficient Frontier, Ranking, and Buy-Hold-Sell (BHS) recommendations. Efficient Frontier:  The Kepler requires some adjustments before the current allocation is fully optimized.  What to do is shown in a later screenshot.  Holdings such as TIP are not improving the … [Read More...]