100 Level

Save Early

Photograph: Florence, Italy There is no better way to prepare for retirement than to save frequently and early.  The operative word is "early."  The Golden Rule of Investing is to "Save as Much as You Can as Early as You Can." William Bernstein, in his book, "Investor's Manifesto" puts it in harsh terms. "Each dollar you do not save at 25 will … [Read More...]

Madison Review: 5 June 2013

Since the last update a few shares of VNQ were sold out of the Madison portfolio.  Limit orders are in place to add to VTI as recommended by the momentum-optimizer spreadsheet.  Below is the efficient frontier graph and the current Dashboard for the Madison. Efficient Frontier:  The efficient frontier graph provides a quick look at how well the current portfolio is positioned with respect to an … [Read More...]

300 Level

Top Twelve Stocks

Creme List The data table below lists the top twelve stocks for this week. I added three new companies to the database and one, Apple, made the elite group. No stock is priced to buy based on my analysis, although that is up to each investor to determine. No stocks were eliminated from the table, but several will be erased next week unless there are major changes in the rankings. … [Read More...]

Optimized Mosaic Portfolio

While the following portfolio is not exactly one of the eleven portfolios tracked here at ITA Wealth Management, there are many similar ingredients.  To create this portfolio I selected 26 ETFs that are frequently part of at least one ITA portfolio.  Familiar ETFs such as VTI, VEU, VWO, DVY, VTV, IWN, VOE, VOT, VNQ, RWX, etc. are among the 26 ETFs.  Nine (9) bond ETFs were in the group, but most … [Read More...]

200 Level

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...]

Schrodinger Portfolio Review: 3 July 2012

Passive is the key word when it comes to managing the Schrodinger Portfolio.  No transactions occurred over the last several months except to add dividends to the cash account.  All asset classes are in balance as shown in the following Dashboard worksheet.  We use sixteen asset classes in this portfolio as I have never added international bonds to the mix. … [Read More...]

400 Level

Delta Index Calculation #1

When Is It Time to Invest? Long-time readers of ITA Wealth Management are familiar with the Quantext Portfolio Planner (QPP) analysis and to a lesser degree the "Delta Index" worksheet I developed as an extension to QPP.  The jury is still out as to the predictive powers of the Delta Index.  Is it useful to any degree?  In the first screen shot below, I am showing what … [Read More...]

Is Risk Receiving Too Much Attention?

Are we paying too much attention to risk or portfolio uncertainty?  The answer to that question may not be as straight forward as readers might expect.  Each time ITA Wealth Management readers see a Quantext Portfolio Planner (QPP) analysis, projected portfolio uncertainty is one of the five critical metrics or outcomes.  Since projected return and projected standard deviation (SD) … [Read More...]