100 Level

It All Begins With Saving

Any book, blog, manuscript, or discussion related to investing starts with saving.  Apply "The Golden Rule of Investing."  Simply stated, save as much as you can as early as you can.  Begin saving as early in life as possible.  When teaching young folks the importance of the Golden Rule, I presented them with a simple spreadsheet.  Here are the essential … [Read More...]

Ethical Investing: The Active or Passive Approach

  The Ethical Dilemma Back on December 16th I wrote about the first of five fundamental decisions one makes to become a successful investor.  Readers of the ITA Wealth Management blog will recall the first decision is "The Do-It-Yourself Decision."  Will you manage your own money or will you hire a professional to do it for you?  Obviously, we favor the side of … [Read More...]

300 Level

Euclid Portfolio Update: 27 August 2013

Yesterday I posted the Dashboard for the Euclid, one of three portfolios where all the detailed transactions are not available to Platinum members.  However, there is still a lot of useful information as I go through these updates.  This morning I will first look at the efficient frontier graph to see how well the Euclid assets are positioned with respect to the optimized portfolio recommended for … [Read More...]

Asset Allocation: Medium-High Risk Portfolio

This is the fourth portfolio in this series of relative risk allocation plans based on the data table found in this blog entry.  Note how the projected return is rising, but so is the projected uncertainty.  Return and Risk are highly correlated.  It is difficult to find a combinations of tickers that will increase the projected return while driving down the projected standard … [Read More...]

200 Level

Retirement Rule #4: Maximize Contributions to Employer Retirement Savings Plan

If you are fortunate and work for an employer who has any sort of matching savings plan, by all means take advantage of this offer and maximize your contribution.  To do otherwise is to leave good money on the table.  For example, assume your employer will match dollar for dollar any contribution you make to a saving plan up to 4% of your salary.  Further, assume you are earning $40,000 per year.  … [Read More...]

The Power of Asset Allocation

Photograph: River activity on the Rhine River With permission from a Platinum member, here are some statistic of a portfolio launched in early January of 2002.  At the close last week, this portfolio generated an annualized return of 8.1% vs. 4.8% for the VTSMX benchmark.  That 3.3% point difference on an annualized basis resulted in a $26,573 portfolio moving up to $47,235 over the … [Read More...]

400 Level

Euclid Review: ITA Risk Reduction Model

Here we are on the 12th of March and it is once more time to examine the Euclid Portfolio.  Platinum members are aware that the Euclid Portfolio is one of the portfolios where all the transaction details are not made public.  However, it is one of the portfolios where I am using the ITA Risk Reduction model.  New members can check out the link to see what the ITARR is all about. We … [Read More...]

Delta Factor: Three-Year Analysis Projects Grim Market Ahead

Yesterday I uploaded a "Delta Factor" data table using four years of historical data.  Today I am posting another table.  I added a few ETFs, but the main difference is that I am using three instead of four years of historical data.  Note the major difference in the projections for the future.  All the red is due to the analysis beginning with the market in steep … [Read More...]