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...]

Active vs. Passive Investing: Part 7

Section Seven of the "Active vs. Passive Investing" article is sumarized the following paragraph. "Some indexers never claim passive investing gives superior returns. They claim only that active investors do better than the benchmark some of the time, and worse some of the time, while passive investing gets rid of that risk by equaling the benchmark every time. They admit some … [Read More...]

300 Level

QPP Analysis of Curie Portfolio

Curie Review: Part II Does the Curie need tweaking?  Is there a match between any of the under-target asset classes and ETFs that might be priced to buy? Taking the current ETFs and stocks held within the Curie, I did a copy and past of both the holdings and percentages and ran the following QPP analysis on the Curie.  It has been over three months since I last analyzed the Curie and it … [Read More...]

Newton Portfolio Update

Many changes occurred in the Newton Portfolio this week.  I sold down a number of positions, some for re-balancing purposes and others are tactical (TAA) in nature.  I need to preserve capital.  I saved several thousand dollars by this move, but I will not know if this was wise until the portfolio is back in balance.  The problem with any Tactical Asset Allocation move is that … [Read More...]

200 Level

Retirement Mistake #4: Overestimating Portfolio Return

Historically, the U.S. Stock Market has returned about 7% annually in excess of inflation.  Is this likely to continue?  Real earnings come from dividends, dividend growth, and P/E expansion.  Projecting future returns to match the historical level, which included one of the longest bull markets from August of 1982 through March of 2000 is not likely to be duplicated in the near future.  Further, … [Read More...]

Portfolio Performance: 7 January 2012

Of the ten portfolio evaluated a week ago, all showed absolute gains this week.  A new portfolio, Gauss, was add to the list.  Expect the Internal Rate of Return (IRR) values for this new portfolio to be exaggerated for a number of months as that is the nature of the IRR.  Slight performance changes are amplified as these are annualized percentages calculated over only a few … [Read More...]

400 Level

Let’s Get Serious About Reducting Risk

Most readers of ITA Wealth Management remember the dot com crash of 2001 and 2002.  If that memory faded, the devastating bear market of 2008 and early 2009 is still with us unless one was a shepherd in Patagonia.  I assume there are more than a few readers who still recall the bear market of the mid-1970s, and the long wait until the market suddenly woke up on August 12th of 1982 - only … [Read More...]

“Delta Factor” Signals for a Variety of Equity ETFs

Delta Factor Analysis of Equity ETFs Which ETFs appear to be priced for purchase at this time?  In the screen shot below Platinum members will find all the basic ETFs we use in our portfolios to cover the global equities market.  There are only a few ETFs that are priced to buy. … [Read More...]