100 Level

Second Grader’s Index Portfolio

Second Grader Portfolio About a year ago, Allan S. Roth, financial adviser, wrote a book I referenced in my last bog post. Roth helped his son, Kevin, set up this basic portfolio when Kevin was a second grader. I think he is now a fifth or sixth grader. The "second grader" portfolio is a three asset class portfolio or about as simple as it gets. The three asset classes are: U.S. … [Read More...]

Easy Investing

While few stock pickers are successful investors, the index investor or a passive oriented investor can do better than the majority of stock market participants by following a few simple rules.  One of those rules is simply - Don't build your portfolio by picking individual stocks.  Use index funds or index ETFs.  Investors saving small amounts of money each month are better off … [Read More...]

300 Level

Possible Portfolio For 2013

As we look forward to 2013, what might a possible portfolio look like considering the uncertain future.  In the following QPP analysis I built this possible portfolio using the Swensen Six Portfolio as a base.  Then I added several risk adverse ETFs as Platinum members can see. The following material is not available for publication elsewhere on the Internet. … [Read More...]

TLH Spreadsheet: Why It Is Useful For Serious Investors

Platinum members new to ITA Wealth Management should not overlook the power of the TLH Spreadsheet.  Successful investing is all about portfolio planning, construction, and monitoring.  The TLH Spreadsheet is an aid in all three categories.  Here are several benefits investors derive when using this portfolio tracking spreadsheet. 1. Construction and ease of tracking Strategic Asset Allocation … [Read More...]

200 Level

Smartest Low-Medium Risk Portfolio

With this low-medium risk portfolio we move up one notch in aggressiveness. This is still a very conservative portfolio with 60% committed to the bond/income asset class. Moving from 80% in bonds down to 60% brings about an increase in both projected return and projected uncertainty.  The Return/Uncertainty ratio is still a respectable 0.62. Platinum membership is available for a low $5.00 … [Read More...]

Portfolio Performance Data: 23 September 2011

After this week, ITA Wealth Management readers will certainly be aware of the high Retirement Ratio (RR) standard.  Only one portfolio, the Einstein, managed to turn in a positive RR value.  Let's face it, it was a very poor week for both domestic and world markets.  IRR percentage points were shed by every portfolio.  The good news is that most of the portfolios gained on … [Read More...]

400 Level

Risk

Portfolio Risk Risk is a messy word as it carries so many different meanings in the investing world. Here are at least three meanings of the term. 1. Committee members giving oversight to an endowment fund may define risk as follows. Will the endowment fund grow sufficiently to best inflation, grow a little, and still be able to throw off 5% to find their institution? That is asking a lot of a … [Read More...]

Broad Market Outlook Beginning to Show Cracks

As anticipated for a number of weeks, the broad U.S. Equities market is showing the first signs of cracking.  The following Bullish Percent Indicator tables provide the evidence. The following information is not available for publication elsewhere on the Internet. Broad Index BPIs:  All major indexes are now controlled by defensive teams as all show O's in the right-hand column when examined … [Read More...]