100 Level

Retirement Planning Web Sites

Below are links to three sites that will aid you in planning for retirement.  These resources come from Vanguard, The Motley Fool, and Fidelity. Here at ITA Wealth Management, we also have a retirement planner, but we require more information than the three sites referenced below. Here are the three references. 1. Vanguard site can be found here. 2. The Motley Fools site can be found at … [Read More...]

Index vs. Passive Investing

Harold R. Evensky, in his Wealth Management: The Financial Advisor's Guide to Investing and Managing Client Assets book, makes a distinction between index and passive investing.  The distinctions can be found at this location.  Few readers are unaware of the differences between active and passive management, but the subtle definitions between index and passive management deserves some … [Read More...]

300 Level

Optimization Correction For 12 ETF Portfolio

Here are the following assumptions I used to create the portfolio shown below.  1)  The S&P 500 is assumed to grow at 7% per year.  This percentage is adjusted by setting the Delta Return to -3.3% inside the QPP software.  2) I used five years of data running from 2/6/2008 through 2/6/2013.  3) The Solver Parameters are listed below. The following material is not available for publication … [Read More...]

Portfolio Changes

This morning I walked through the Strategic Asset Allocations for each portfolio and lowered the bond allocation to something close to 10% in each portfolio. The reason for making this Tactical Asset Allocation change is tied to my concern interest rates will rise. With rates as low as they are, the probability of them going lower is very low as they are not going below 0%. It makes sense to push … [Read More...]

200 Level

Optimizing a Basic Portfolio: 3 and 5 Year Analysis

The sample portfolio shown below consists of 16 ETFs that cover all major markets found in the eleven portfolios tracked here at ITA Wealth Management.  VTI covers all of the "Big Nine" asset classes.  We add VIG for added dividends and IWN for any possible push toward small-cap value, or where Fama and French find added alpha. VEU is our developed international market and VWO is the ETF used … [Read More...]

Optimization of Equity and Bond ETFs: A Handsome Portfolio Results

The following table shows an array of ETFs recommended by a reader.  What I did with this set of ETFs was to screen for maximum return with the following constraints. … [Read More...]

400 Level

“Delta Factor” Update for Bonds

It has been several weeks since I posted information on the "Delta Factor" for bonds.  I don't pay a lot of serious attention to this information, but I do observe the projections to see if there are elements of interest.  In this post, Vale Capital II (CJS) stands out as a possibility.  I'm not familiar with CJS.  I recall a reader of this blog asked that … [Read More...]

Bullish Percent Indicators: 12 October 2012

Major Indexes:  The single major change this week is the move out of the overbought zone for the NYSE BPI.  That is the column that somehow was changed to 68.  That should read, NYSE.  Of less importance is the transportation average moving from defense to offense.  Nevertheless, that move is positive.   Sectors:  There were no significant changes in the 10 … [Read More...]