100 Level

ETFs For Different Asset Classes

As requested in a recent comment, here are ETFs to use in the thirteen asset classes. ETF Table #1:  Since the table is so wide, I am not able to capture it in one screen shot so I broke it into two sections.  Here is the first piece.  In some cases it is a little hard to determine which asset class the ETF belongs as the letters are clipped.  For example, PCY goes into Int'l Bond and VEA into … [Read More...]

Portfolio Construction Index Funds Advisors (IFA) Style

Bob Warasila passed on several references from the http://www.ifa.com web site that deal with portfolio construction.  [I consider Mark Hebner's web IFA site to be one of the best available.]  Keep in mind that IFA is a company that uses Dimensional Fund Advisors (DFA) mutual funds and the only way one gains access to these funds is through an approved advisor such as Index Funds … [Read More...]

300 Level

Kepler Portfolio Update: 13 March 2012

Another month rolls around for the Kepler Portfolio and all is going well.  Once more we begin by examining the Dashboard, the worksheet extracted from the TLH Spreadsheet.  The Dashboard is the Strategic Asset Allocation plan for the portfolio.  All seventeen asset classes are used to fill out the asset allocation program for this portfolio. Platinum members will note the tilt … [Read More...]

Bohr Portfolio Update: 21 May 2012

Due to missing a recent purchase of PowerShares Emerging Markets Sovereign Debt (PCY), the performance of the Bohr Portfolio is actually a bit higher than reported in the recent Portfolio Performance post.  I call the Emerging Markets Sovereign Debt an International Bond asset class.  The purchase was only five shares, or a minor investment just to set up a new asset class for this … [Read More...]

200 Level

Bond Free Portfolio

Investors wary of the bond market should take a look at this portfolio.  Several goals are on the horizon when building a portfolio.  My preference is to see a projected return exceed that projected for the S&P 500 by 100 basis points.  The second goal is to bring the projected standard deviation in under 15%.  The following portfolio manages to do that without allocating anything to SDS, the … [Read More...]

Stress Testing the Modest Retirement Portfolio

Back on January 7 of this year I posted a "Modest Portfolio" that readers can locate and see the entire analysis.  Below is the same portfolio with a stress test included.  Since this is a middle of the road type portfolio, it is an excellent example to use for a stress test. The portfolio holds only nine ETFs and there are times when one will want to be out of SDS.  Now … [Read More...]

400 Level

Retirement Target Return Revisited

Retirement Target Return Investors always have a goal for their portfolio, whether stated directly or indirectly.  For some it may be as simple as to not lose money.  For others it is to outperform a benchmark.  Exactly what is the Retirement Target Return (RTR) and how does it fit in with portfolio risk management?  RTR is one of the factors found in the Retirement Ratio (RR) … [Read More...]

Fiscal Cliff: Time to Activate ITARR Model

We hear a lot about the coming "fiscal cliff."  If Congress does not act before taxes increase and spending cuts go into effect at the beginning of 2013, the country could go into another recession.  Rather than panic, now is the time to pay close attention to each major holding in your portfolio(s).  Instead of limiting the ITA Risk Reduction model to five portfolios, I plan to expand the number, … [Read More...]