100 Level

Fiscal Cliff: Time to Activate ITARR Model

We hear a lot about the coming "fiscal cliff."  If Congress does not act before taxes increase and spending cuts go into effect at the beginning of 2013, the country could go into another recession.  Rather than panic, now is the time to pay close attention to each major holding in your portfolio(s).  Instead of limiting the ITA Risk Reduction model to five portfolios, I plan to expand the number, … [Read More...]

Ten Best Investment Books

Education is a step toward financial success. Where does one begin when trying to come up with the top ten investment books? Here is my list, but be forewarned, this is not a list of books that focus on either fundamental analysis of stocks, nor is it a list of books explaining technical analysis. In fact, the list below is the antithesis of stock picking. My list of the top ten investment books … [Read More...]

300 Level

Ranking Dividend Aristocrats

Here is an article on ranking dividend aristocrats.   http://seekingalpha.com/article/1823142-ranking-dividend-aristocrats … [Read More...]

Annualized Future Total Market Return

I've prepared a simple spreadsheet to project the Annualized Future Total Market Return. The equation used to make this calculation comes from John P. Hussman, of Hussman Funds. Use values found in the article to test the accuracy of the spreadsheet. To gain access to the spreadsheet move to the right-hand edge of the page and scroll down to Interesting Sites. Then look for the Market Return … [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...]

Portfolio Performance: 25 November 2011

The weekly performance data is presented in the table below.  While it was another down week on an absolute scale, most of the portfolios performed rather well.  Only the Einstein lost ground with respect to the VTSMX benchmark.  Those holding even were the Schrodinger, Kepler, and Bohr.  Portfolios that picked up at least a tenth of a percentage point on the VTSMX were the … [Read More...]

400 Level

Simple Global Portfolio as IRA Risk Reduction Core

ITA Risk Reduction Portfolio Over the last few weeks, I've discussed a risk reducing portfolio consisting of seven ETFs.  They are: VTI, IWN, VEU, VWO, VNQ, RWX, and IGE.  While this combination provides global exposure, there are inherent risks.  While the projected return is a robust 9.7%, we take on a high degree of uncertainty to reach this return.  The projected … [Read More...]

What Sector ETFs, If Any, To Include In Portfolio?

Certain ETFs are automatically included as potential candidates for inclusion when constructing a portfolio.  A few of the very basic ETFs are:  VTI, VEU, VWO, VNQ, RWX, BND, etc.  There are many more, but you get the idea.  Sector ETFs are not automatically included in the basic building blocks and that is why I periodically run a ranking of the sector ETFs to see if any should be included as … [Read More...]