100 Level

The Power of Consistent Savings

Two of the recent portfolios added to the stable of accounts tracked at ITA Wealth Management are the Kenilworth and Gauss.  Platinum members have access to all the transactions of these two portfolios.  I'll use the Kenilworth as the primary example of the power of consistent savings as the account was initially seeded with one $1,500 investment followed by another $1,000 addition.  After that, … [Read More...]

Setting Buy Limit Order

Within a TDAmeritrade account, how does one set a limit order to buy shares of an ETF?  The following video clip explains the process.  It is quite easy.  Just log on to your account and walk through the following steps.  As mentioned in the video/audio clip, I rarely set orders of any type outside NYSE business hours as the bid-ask spread all too frequently expands in after … [Read More...]

300 Level

Optimizing Dividend Stocks

Here is my optimization analysis on a 12-Dividend portfolio made up of individual stocks.  It might be interesting to look at a portfolio made up of 20 to 30 individual stocks. I like the 9.0 projected return and the high Return/Risk ratio.  A yield of 2.7% is also quite respectable. Do these results match others who are using this optimizer in conjunction with the QPP software? … [Read More...]

Improving On The Simple Nine Global ETF Portfolio

While there are advantages to keeping a portfolio simple, there are also disadvantages.  For example, one will miss opportunities by not including asset classes that have been shown by Fama and French to add value to the portfolio.  Namely, value asset classes such as small-cap value (VBR).  We don't want to eliminate asset classes just to keep the portfolio simple.  The Ranking data table shows a … [Read More...]

200 Level

Kenilworth Portfolio Review: 11 November 2011

Portfolio review time is here again for the Kenilworth.  As usual, we first examine the Dashboard to see which asset classes need attention and why.  Below is the worksheet extracted from the TLH Spreadsheet. … [Read More...]

Solving Investment Problem #5: It is too late to start saving.

Balderdash!  It is never too late to begin saving for retirement.  Yes, it is preferred to follow "The Golden Rule of Investing" and start saving as early as possible, but it is never to late to begin.  Let me illustrate with a short story. I know of one family that had almost no savings by age 57.  The house was paid in full, but savings for retirement were close to … [Read More...]

400 Level

Preparing the Euclid Portfolio for Timing Model

Preparing the Maxwell and Euclid Portfolios Further preparation in the Euclid Portfolio took place this morning as shares of VBR were sold.  What I am doing is selling off holdings outside the basic ETFs we plan to use in this experiment.  These ETFs include VTI, VEU, VWO, VNQ, and RWX as these are the instruments I will use in this modified Faber-Richardson model.  I probably will … [Read More...]

Sharpe Ratio: Why I prefer the Sortino and Retirement Ratios

The Sharpe Ratio is a measure of return-risk for a portfolio or individual investment.  Like many concepts that lend themselves to mathematics, it is easier to understand what the Sharpe Ratio means if written in the form of an equation. S = (R - T)/Sigma     (My editor does not have the correct symbol for Sigma.) Developed by Stanford Professor, William F. Sharpe, … [Read More...]