100 Level

Six Investing Basics

1.  Save 2.  Index 3.  Diversify 4.  Cut Costs 5.  Rebalance 6.  Monitor Save:  Follow "The Golden Rule of Investing."  There is no substitute for saving and living below your means. Save early in life and do it frequently. Index:  Use index funds or index ETFs.  Avoid picking individual stocks unless you are an expert.  Even most experts cannot do it successfully.  Remember, … [Read More...]

How Would You Balance the Federal Budget?

If Congress were to ask you how to balance the federal budget, what suggestions would you pass on? Place your suggestions in the comment section below.   Photograph: Longboat Key - Sarasota, FL … [Read More...]

300 Level

Adding A New Investment To The TLH Spreadsheet

Photograph: Pierce-Arrow Since several of the former Camtasia video/audio clips are not working, I prepared a new one that explains what is required to insert a new investment in a portfolio.  There are four essential steps shown in the video clip. Insert the actual purchase.  In the example, I bought 100 shares of the ETF, BIV. Make sure to insert a row and list BIV as one of the … [Read More...]

Bohr Portfolio Examined

This month the Bohr Portfolio received an infusion of cash and reduced shares of TLT to pull down the percentage held in the over allocated bond/income asset class.  A few May dividends were added keeping the IRR for the portfolio well ahead of the VTSMX benchmark and in line with the ITA Index, a customized benchmark. Shown below is the current Dashboard for the Bohr.  Limit orders are … [Read More...]

200 Level

Goal Setting

What are your retirement investment goals?  Do you even think about setting goals?  Would this statement fit your situation? "I really would like to be able to pay for my children's education, retire, and enjoy my retirement."  While this statement covers a broad range of expectations, it is not specific.  Over what time frame do you intend to cover or reach these … [Read More...]

Alternative Investment Vehicles to Suggested Index Funds

What are the alternatives one might use to those suggested by Solin in his recent book, "The Smartest Portfolio You'll Ever Own."  The reason for seeking alternative investments is two fold.  1)  We seek ETFs that have historical records of at least three years.  This is so we can run Quantext Portfolio Analysis (QPP) on the portfolios.  2)  When … [Read More...]

400 Level

Asset Allocation for ITARR Model

What does the Strategic Asset Allocation (SAA) plan look like for investors using the ITA Risk Reduction (ITARR) model?  Keep in mind that you can use the general ITARR principles laid out in a prior blog post.  The following screen shots are examples for the Madison Portfolio, another candidate for the ITARR timing model.  Below is the SAA plan if one populates the portfolio using … [Read More...]

Risk Defined

Portfolio Risk Risk is a messy word as it carries so many different meanings in the investing world.  In the most general sense, it means we don't know what is going to happen.  Here are several specific meanings of the term.  We will begin by defining "systematic" and "specific" risk. 1.  "Systematic" risk is risk we cannot avoid if we seek returns higher than the interest rates from a money … [Read More...]