100 Level

Rule #10: Control Retirement Portfolio Expenses

Regardless what type of portfolio you are overseeing, holding down expenses is essential to building a strong base for the retirement years.  Take the Schrodinger Portfolio as an example.  This portfolio was launched twelve years ago.  "Reorganizing" the Schrodinger reduced expenses by 200 basis points.  As an added boost, the performance immediately improved as the portfolio initially was … [Read More...]

General Guidelines for Investing Success

While it is rather early in the morning here on the West Coast, I'm still thinking clearly so take these ideas seriously.  When putting together a portfolio, follow these general guidelines. Use index funds or index ETFs to build the core of the portfolio. One should not need more than eight to twelve ETFs to build a well-diversified portfolio. Only add individual … [Read More...]

300 Level

Sample Portfolio Requested By Platinum Member

The following set of tickers and percentages were sent to me for analysis.  I used five years of historical data and set, as I generally do, a 7.0% return projection for the S&P 500.  I used TIP (1.0%) for the cash holding.  That choice has little impact on the final projections.    Below is the analysis data.  Instead of me writing up my observations, I'll … [Read More...]

Einstein Portfolio Review: August 13, 2011

Although the Einstein Portfolio is not scheduled for a review, shares of VEU were added to the portfolio this week.  This purchase brings the developed international markets asset class closer to the target range of 15.0%.  In the first screen shot we see the Strategic Asset Allocation plan presented in tabular form.  I've not made the decision to eliminate mid- and small-cap … [Read More...]

200 Level

Portfolio Performance – 1 October 2010

TDAmeritrade came out with the September statements this afternoon so I was able to update many of the portfolios in greater detail that expected. In nearly every case, we made progress either by gaining on the benchmarks or reducing portfolio risk. Only in the case of the Schrodinger Portfolio, where we switched to the ITA Index benchmark for our SR and RR calculations, did we see significant … [Read More...]

Portfolio Performance Data

Momentum principles continue to produce positive results as Platinum members will see in the following data table.  Right now I am making comparisons from week to week.  Eventually I want to extend the information out over at least five weeks so each portfolio has a chance to go through at least one review cycle.  Until I build that data I will make week to week comparisons.  The problem with … [Read More...]

400 Level

Sharpe Ratio: Why I prefer the Sortino and Retirement Ratios

The Sharpe Ratio is a measure of return-risk for a portfolio or individual investment.  Like many concepts that lend themselves to mathematics, it is easier to understand what the Sharpe Ratio means if written in the form of an equation. S = (R - T)/Sigma     (My editor does not have the correct symbol for Sigma.) Developed by Stanford Professor, William F. Sharpe, … [Read More...]

ITA RR Style Portfolio

Planning a Risk Reduction Portfolio Special note to Platinum members: I've been working on an asset allocation plan that I think would work for an ITA Risk Reduction (ITARR) style portfolio.  Below is the screen shot of the QPP analysis of such a portfolio.  In the current analysis, only seven of the 10 ETFs are used.  SDS would only come into play under extreme conditions. … [Read More...]