100 Level

American Workers Unprepared

ITA Wealth Management is not so much a blog of how to make money as it is a blog to help investors achieve retirement goals.  According to recent Department of Labor statistics on retirement sufficiency, U.S. workers retiring in the 2050s will have saved only enough in their 401(k) accounts to replace an average of 22% of their pre-retirement income.  What is staggering is that 37% will have no … [Read More...]

What Comes After The Strategic Asset Allocation Plan?

Where do we go next after the following plans are in place? Credit cards are paid in full. A savings plan is in effect and money is set aside each paycheck. A discount broker account is open at a business such as TDAmeritrade. The Strategic Asset Allocation plan is in place. Ten to fifteen asset classes were selected for investment. We now come to the difficult and all … [Read More...]

300 Level

What Should I Do If I Am Holding Cash?

What should I do if I am holding cash?  Is it time to move back into the market, and if so, how should I proceed?  Those are difficult questions considering the S&P 500 (VFINX) increased in value by 87.4% since January 20, 2009.  If one were to follow the Louis Rukeyser analysis, moving immediately into the market is the correct decision.  However, Rukeyser was using data … [Read More...]

Growth: Portfolio #5

Moving one step closer to increasing the projected return, this post is about the Growth Portfolio, number 5 out of 6 in this series.  Bond and income is reduced to 16% in this portfolio so it is definitely tilting toward the aggressive side of investing.  Two ETFs, BND and IEF are eliminated from this portfolio as we will concentrate our income holdings in TIP and TLT. Platinum … [Read More...]

200 Level

Portfolio Performance Data for 21 Portfolios

Portfolio Performance The data table below is incomplete as I am still working through all the dividends thrown off in the second quarter.  As I balance more portfolios with the June 30th statements I will be entering new data.  Be sure to refresh your browser when you land back on this page as new data will likely show up.  Portfolios tracked by Captool will have a 6/30/2011 date … [Read More...]

Asset Allocation: Breaking It Down

Launching a new portfolio requires a portfolio policy or an asset allocation plan.  There is a significant body of research on the importance of this decision.  However, some of the latest research by Ibbotson and Associates show this decision to be less important than it was thought to be twenty years ago.  Here are some of the steps I go through in thinking through what it means … [Read More...]

400 Level

Passive vs. Active Investing

Why do large endowment funds use a passive investment strategy? Is it due to fund size and their portfolios are so large they mirror the market? Again, quoting from my “Active vs. Passive” paper, we have the following. “An estimated 40% to 50% of all institutional monies are in index or passive portfolios while only 3% to 4% of retail investors make use of passive strategies. … [Read More...]

Current Condition of the ITA Risk Reduction Model

In contrast to a passive or index approach to investing, what is the state of the critical ETFs used in the portfolios where we are employing the ITA Risk Reduction (ITARR) model?  Tactical Asset Allocation is applied to ETFs in the Maxwell, Euclid, Madison, Kenilworth, and Gauss portfolios so as to avoid "Black Swan" events as we experienced in 2002 and again in 2008.  While … [Read More...]