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...]

Five ETF Portfolio

Adding REITs What happens if a fifth ETF is added to the portfolio.  In addition to U.S. equities (VTI), developed international markets (VEU), emerging markets (VWO), and bonds/income (TLT), we add REITs (VNQ).  Can we increase projected return and diversification without sacrificing uncertainty or risk?  Below is the screen shot of a five asset class portfolio. … [Read More...]

300 Level

Six “Mad Money” Stocks

Here are six stocks that qualify for "Mad Money" investments.  Do your own thorough research. These stocks are not for publication elsewhere. … [Read More...]

QPP Analysis of Current Schrodinger Asset Allocation: Part 2

Using the percentages allocated to the current holdings in the Schrodinger Portfolio, we have the following Quantext Portfolio Planner (QPP) analysis.  The current asset allocation plan both meets and misses our goals when it comes to setting up a portfolio.  As usual, the S&P 500 is assumed to grow at 7.0% annually.  This assumption is critical as it has a direct bearing on the projected … [Read More...]

200 Level

Going Wobbly On Equities

With the market hovering around all-time highs, perhaps it is time to "go wobbly" on equities.  What might a 20-ETF portfolio look like if the bond requirement were elevated to 30% of the portfolio.  The following is not an operational portfolio, but a sample of securities one might use to build a well-diversified portfolio. Efficient Frontier:  One ETF stands out in the following graph and it … [Read More...]

Active vs. Passive Investing: Part 2

If you missed the first in this Active vs. Passive series of blog posts, I suggest you go back to this entry and print out the article, Active vs. Passive Investing Returns: Does Passive Outperform?  The second major point of the article focuses on indexers changing the subject and setting up straw-men arguments. "Indexing (passive) is the most appropriate strategy for retail … [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...]

Feynman Portfolio Study – Part 1

This first Part of the Study identifies the 10 Asset Groups and 18 individual EFTs that comprise the Feynman Portfolio and looks at the general market behavior, as defined by the Vanguard Total Stock Market Fund (VTSMX), over the 6 year period from 06/29/2007 to 06/30/2003.  The VTSMX will be used as the reference, or benchmark, for comparison of portfolio performance through each future phase of … [Read More...]