100 Level

Retirement Rule #4: Maximize Contributions to Employer Retirement Savings Plan

If you are fortunate and work for an employer who has any sort of matching savings plan, by all means take advantage of this offer and maximize your contribution.  To do otherwise is to leave good money on the table.  For example, assume your employer will match dollar for dollar any contribution you make to a saving plan up to 4% of your salary.  Further, assume you are earning $40,000 per year.  … [Read More...]

QPP Projections: 2007 – 2010

Readers following the comments section of this blog, you will note that Bob W. offered to send me a spreadsheet of Quantext Portfolio Planner (QPP) projections of a portfolio I presented recently.  Below is a screen shot of Bob's spreadsheet. Register as a Guest to see the worksheet. … [Read More...]

300 Level

Bohr Portfolio Update: 30 January 2012

Today I added shares of VWO and RWX as emerging markets and international REITs were both under target.  Even though the Bohr Portfolio is not part of the ITA Risk Reduction experiment, there is an incentive to fill up asset classes where the current price of the the ETF is above its 195-Day Exponential Moving Average (EMA). … [Read More...]

“New Normal” Portfolio Analyzed

Long-time readers of ITA Wealth Management are familiar with the "New Normal" portfolio, a risk oriented portfolio developed by a Platinum member.  Following is an analysis of an approximation of the NN portfolio.  Approximate in the sense that several tickers were combined into one as the "Ranking Software" will not handle more than twenty investments in one run.  In addition I substituted XOM … [Read More...]

200 Level

Retirement Rule #5: Understand Employer Retirement Plan

Assuming your employer has established a retirement plan and you are taking advantage of it, there is still another important step in the process.  It is essential you know something about the plan, particularly what options are available for investing.  It is not unusual for a mutual fund family to work out an arrangement with a company to provide a variety of actively managed mutual funds for … [Read More...]

Will I Run Out of Money Using the Ivy 5?

Ivy 5 Portfolio and Retirement Following up on the quantitative approach to managing portfolio uncertainty, I'll update the Ivy 5 portfolio as referenced in Mebane T. Faber and Eric W. Richardson's book, "The Ivy Portfolio: How to Invest Like the Top Endowments and Avoid Bear Markets." [Open up blog entry for book link to work properly.]  On page 75 of their book, Faber and … [Read More...]

400 Level

“Delta Factor” for International ETFs

What is the outlook for international ETFs?  The following screen show shows the "Delta Factor" projections for a long list of options. … [Read More...]

Portfolio Risk: Advantages of Semivariance

Semivariance: Preferred Risk Measurement Portfolio risk is given lip service, but rare is the investor who takes pains to actually measure the risks involved in the makeup of their portfolio. It is common to hear an investor indicate they have a well-diversified portfolio if it is made up of more than 15 to 20 stocks. The correlation between the investments might be a mystery, yet the claim is … [Read More...]