100 Level

Taxes: Prepare to Harvest Losses

It is not too early to think about capturing tax losses for 2010. We still have a few weeks before we need to make final decisions, but I would at least identify those stocks, index funds, or ETFs that are potential sell candidates. If you are using the TLH spreadsheet to track your portfolio, the information is easy to access. All one needs to do is examine the IRR, assuming you have not moved in … [Read More...]

Index Investing Puzzles

Check out this interesting article titled, "The Weighting Game, and Other Puzzles of Indexing."  Here are the opening two paragraphs. "If we had hosted a panel discussion about active and passive investing 15 years ago, we would have titled it: "Indexing, Does It Make Sense, and If So, Why?" The burden of proof would have lain at the feet of the indexers. That's … [Read More...]

300 Level

Newton Portfolio Update: 7 November 2011

The Newton Portfolio is the most complex of the portfolios I track here at ITA Wealth Management.  At least it holds the greatest number of ETFs.  To simplify the portfolio, I am setting Trailing Stop Loss Orders (TSLOs) for a number of small holdings as I would like to reduce the number of tickers to no more than 25. Below is the Dashboard worksheet of the Newton. Readers can see the … [Read More...]

Asset Allocation: Why Select This Mix of ETFs?

Gauss is the newest portfolio launched (12/27/2011) here at ITA Wealth Management.  While the annualized performance is a respectable 25%, it still lags both the VTSMX and ITA Index benchmarks as it took time to populate all fifteen equity and bond asset classes.  The broad market was in a positive mood during the launch phase and as a result, the portfolio fell behind the … [Read More...]

200 Level

Retirement Portfolio: What Are The Essential Asset Classes To Include?

A request came in from an ITA reader to put together a retirement portfolio that does not need to produce income since social security and a pension will cover those needs.  In other words, what should the retirement portfolio plan look like?  The first guideline is that this portfolio not include any individual stocks as that lays on an additional level of analysis.  I suspect most investors who … [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

Where Is The Market?

Without going into a lot of explanation, contemplate the following graphs.  This graph is a composite of the stocks on the New York Stock Exchange. Platinum membership is available for a mere $5.00 per month.  Learn how to reduce portfolio risk. … [Read More...]

Risk Management: Benefits of the ITA Risk Reduction Model

Platinum members who employ the ITA Risk Reduction model will find the following guidelines of interest.  When your portfolio comes up for review, and I recommend using a 32-Day review period, run through a number of steps.  Before I get to the steps, here are the reasons for selecting the 32-Day interval. It slowly rotates the review through the month rather than always having it occur at the … [Read More...]