100 Level

Keep It Simple: And I Mean Really Simple

Yesterday I was discussing Hedrick Smith's new book, Who Stole the American Dream, with a relative and we talked about how ill prepared Americans are for retirement.  Part of the discussion focused on some new information where I learned a group of workers in a well-known institution had an average of $50,000 saved in their 401-k plans.  Can you imagine going into retirement with so little saved?  … [Read More...]

Asset Allocation: Moderate Portfolio

Analysis of a Moderate Portfolio Changing the asset allocation from growth to moderate requires a shift in the percentages allocated to the six basic asset classes. In the following portfolio we lower the percentage allocated to the broad U.S. equities market, REITs, international, and emerging markets. The percentage allocated to bonds increases significantly. Were I not sticking with the … [Read More...]

300 Level

Momentum-Optimization Model

If you have not checked into ITA for several weeks, you are missing critical information and I hope you will carefully read this blog post as this marks a revision of the ITA Risk Reduction Model.  While I will not take the time to explain every detail in one blog post, readers will see the Optimization-Momentum Model in action over the next weeks and months.  Over time I want to demonstrate how … [Read More...]

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...]

200 Level

Retirement Analysis: What Must Be Done To Avoid Retirement Poverty

As promised, here is the Quantext Portfolio Planner (QPP) retirement analysis using the Kenilworth Portfolio as an example.  The first screen shot shows the assumptions involved in the analysis.  The second slide is familiar to Platinum readers as it lays out the investments and percentage in each.  The third slide is the scary one as it presents the grim details or the … [Read More...]

Developing a Portfolio Plan

Basic Suggestions in Portfolio Development* In the beginning stages of setting up a portfolio plan, there are a few essential decisions investors make. Here are a few hints to consider. Follow "The Golden Rule of Investing." Save as much as you can as early as you can. Develop a savings plan as there is no avoiding this step. Live below your means.  Learn … [Read More...]

400 Level

Why I Did Not Sell RWX Out of The Euclid Portfolio

Followers of the ITA Risk Reduction model may be puzzled as to why I continue to hold a full load of RWX, the international real estate ETF.  After all, is the price not below the 195-Day Exponential Moving Average (EMA)?  Yes, the rule calls for a sell.  However, in this case I applied a PnF judgment call and it looks like the following.  We are looking at a "High Pole … [Read More...]

Retirement Ratio: Portfolio Performance and Uncertainty Measurement

What is the Retirement Ratio (RR)?  I never heard of such a ratio, at least as it is defined below.  Before going into an explanation, let me digress and address similar ratios.  Portfolio performance measurements that combine both return and risk are readily available to investors.  The Sharpe ratio is perhaps the best known "efficiency ratio" where it measures the … [Read More...]